Under what circumstances must a Cool Binz franchisee reimburse the franchisor?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
ve; including, without limitation, any warranty, or certification of this Agreement, and any System Standard or other provision in the COOL BINZ owners' intranet website or the Operations Manual.
In addition to our right to terminate this Agreement, and not in lieu of such right, or any other rights we may have against you, upon a failure to cure any default within the applicable time period (if any), we have the right, but not the obligation to,
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- Charge the Non-Compliance Fee;
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- Reduce the size of your Territory or permit other franchisees or Company Stores to provide the Services and Products within your Territory;
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- Enter upon the COOL BINZ Business premises and exercise complete authority with respect to the operation of the COOL BINZ Business until such time as we determine, in our sole discretion that the default has been cured, and you are otherwise in compliance with this Agreement. In the event we exercise the rights described in this Section, you must pay us a reasonable management fee and reimburse us for all reasonable costs and overhead, if any, incurred in connection with our operation of your COOL BINZ Business including, without limitation, costs of personnel for supervising and staffing the COOL BINZ Business and their travel and lodging accommodations, plus a 20% service charge. This fee is in addition to the payment of the Royalty and all other fees due under this Agreement during the time we exercise our rights under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, a franchisee may be required to reimburse Cool Binz under specific circumstances related to operational control. If a franchisee fails to correct a default within the given timeframe, Cool Binz has the option to take control of the Cool Binz business operations.
Should Cool Binz exercise its right to operate the Cool Binz business, the franchisee is obligated to cover several expenses. These include a reasonable management fee, all reasonable costs, and overhead incurred by Cool Binz during their operation of the business. The costs may include personnel for supervising and staffing the Cool Binz business, their travel, and lodging, plus a 20% service charge.
This reimbursement is in addition to the standard royalty and all other fees due under the Franchise Agreement during the period Cool Binz manages the business. Furthermore, the franchisee agrees to indemnify and protect Cool Binz (and its representatives and employees) from any fines, claims, suits, or proceedings that may arise from Cool Binz's operation of the Cool Binz business.