What are the two ways a Cool Binz franchisee can transfer title to the Equipment?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee covenants that Franchisee will not transfer title to the Equipment except in one of these two ways:
- a. Sell the Equipment to another COOL BINZ Franchisee in good standing under its franchise agreement at a mutually acceptable price. CBI has first right of refusal to purchase the Equipment and must approve any transaction. If CBI financed any portion of the purchase price of the Equipment, the transferee will pay the proceeds to CBI if there is any outstanding balance under the Promissory Note for the Equipment prior to transfer of the Equipment. At the time of transfer Franchisee's account with CBI must be current and the purchasing Franchisee may not have any pending default under any agreement with CBI.
- b. If Franchisee is terminating or not renewing the Franchise Agreement and Franchisee owns another COOL BINZ franchise, the Equipment (and the liability for any amount owing on the purchase price of the Equipment) will be transferred to that franchise upon written request.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, a franchisee can transfer title to the equipment in one of two ways. First, a franchisee can sell the equipment to another Cool Binz franchisee who is in good standing under their franchise agreement, at a mutually agreeable price. Cool Binz has the first right of refusal to purchase the equipment and must approve any transaction. If Cool Binz financed any portion of the purchase price of the equipment, the purchasing franchisee will pay the proceeds to Cool Binz if there is any outstanding balance under the promissory note for the equipment before the transfer. At the time of transfer, the selling franchisee's account with Cool Binz must be current, and the purchasing franchisee may not have any pending default under any agreement with Cool Binz.
Second, if a franchisee is terminating or not renewing the Franchise Agreement and owns another Cool Binz franchise, the equipment (and the liability for any amount owing on the purchase price of the equipment) will be transferred to that franchise upon written request.
These conditions ensure that the equipment remains within the Cool Binz franchise network and that any financial obligations related to the equipment are properly addressed during the transfer. The franchisor's right of first refusal and approval of the transaction terms also allow Cool Binz to maintain control over its proprietary equipment and the financial stability of its franchisees.