When transferring a Cool Binz franchise, what fees must be paid in addition to the transfer fee?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
enter into a comfort 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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- the transferee must assume and agree to be bound by all outstanding obligations to customers and clients of the COOL BINZ Business;
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- you, your principals, and the transferee (if we have a prior relationship with the transferee) have signed a general release, in a form satisfactory to us, of any and all claims against us and our shareholders, officers, directors, employees, and agents (such requirement to sign a general release is subject to change in our sole discretion);
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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, if you decide to transfer your franchise, you will need to cover several fees in addition to the transfer fee itself. These include all royalties for completed jobs up to the closing date, any outstanding fees or amounts owed under promissory notes, late payment fees, late report fees, NSF fees, and interest fees. You're also responsible for any other amounts you owe to Cool Binz, plus interest.
Furthermore, if you used a broker or lead referral network to list your Cool Binz business or if the transferee was referred to you or Cool Binz by such a service, you must pay all associated commissions, broker fees, or similar expenses. This means that selling your franchise through a broker will add to your costs.
In certain situations, if you were awarded your Cool Binz business by purchasing the assets of a previous franchisee, you might have to cover any outstanding royalties and fees that your predecessor didn't pay on time, or that weren't negotiated in your purchase agreement. This includes the transfer fee itself, any unpaid royalties, amounts owed for purchases from Cool Binz, late payment fees, late report fees, interest fees, NSF fees, and any other outstanding fees, plus interest, along with any applicable broker fees incurred by either you or the previous franchisee.