When are Cool Binz transfer fees collectable?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
t letter assuring us that the transferee will meet its obligations under the Franchise Agreement, and reaffirming your guaranty of the Franchise Agreement;
8. you pay us:
- a. our then-current Transfer Fee, as published in our Operations Manual. The Transfer Fee is due upon our preparation of the required transfer documentation (consent to transfer and assignment agreement and/or preparation of transferee's franchise agreement), and is non-refundable at such time;
- b. all Royalties for completed jobs up through the date of closing, fees, amounts owed under any promissory notes with us, Late Payment Fees, Late Report Fees, NSF Fees, Interest Fees, and all other fees or amounts owed to us, plus interest; and
- c. all commissions, broker fees or other similar expenses if: (i) you list the COOL BINZ Business with a broker, lead referral network or similar entity; or (ii) the transferee is referred to you or us by a broker, lead referral network or similar entity;
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- the transferee must successfully complete our Business Manager and Technical Operations Training program;
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Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the transfer fee is due upon Cool Binz's preparation of the required transfer documentation. This documentation includes the consent to transfer and assignment agreement, or the preparation of the transferee's franchise agreement. Once Cool Binz prepares these documents, the transfer fee becomes non-refundable.
This means that a Cool Binz franchisee looking to transfer their franchise will need to pay the transfer fee at the time the transfer documents are prepared by Cool Binz. The fee is non-refundable once paid, regardless of whether the transfer is ultimately completed. This is a standard practice in franchising, as the franchisor incurs costs in reviewing and processing the transfer application.
Furthermore, if a new Cool Binz franchisee is awarded their business as a result of purchasing the assets of a previous franchisee, the new franchisee must pay Cool Binz's then-current transfer fee if it was not paid by the predecessor. They must also pay any and all outstanding royalties, amounts owed for purchases, late payment fees, late report fees, interest fees, NSF fees, and any other fees owed, plus interest, as well as any applicable broker fees, whether incurred by the new franchisee or by their predecessor franchisee.