Under what circumstances might Cool Binz require a Designated Manager for a Cool Binz Business?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
ten (10) years (the "Initial Term") commencing on the date of this Agreement.
You must at all times faithfully, honestly, and diligently perform your obligations under this Agreement. Except as stated herein, you must designate at least one managing owner (the "Managing Owner") who will be our primary individual contact with the COOL BINZ Business and who we will approve in our sole discretion. A Managing Owner may, in our sole discretion, serve as the Managing Owner of more than one COOL BINZ Business that is owned by you; provided, however, that we may, in our sole discretion, require you to designate a person who will serve as the primary individual contact for this COOL BINZ Business (the "Designated Manager"). We must approve of the Designated Manager in writing, which we may grant in our sole discretion. The Managing Owner and, if applicable, the Designated Manager, must successfully complete our JumpStart and Initial Training Programs as described in and required by the Franchise Agreement. The Designated Manager is not required to have an ownership interest in the COOL BINZ Business. The Managing Owner or, if applicable, the Designated Manager must continuously exert her/his full-time best efforts to manage, promote and enhance the COOL BINZ Business, and such other COOL BINZ Businesses as we permit in our sole discretion. Without our prior written permission, the Managing Owner and, if applicable, the Designated Manager, must not engage in any other business or activity that conflicts with their obligations to operate the COOL BINZ Business on a full-time, year round basis.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, while franchisees must designate a Managing Owner as the primary contact for their Cool Binz business, Cool Binz retains the discretion to require a separate Designated Manager. This Designated Manager would then serve as the primary individual contact for the Cool Binz Business instead of the Managing Owner. Cool Binz must approve this Designated Manager in writing.
The Designated Manager does not need to have an ownership stake in the Cool Binz Business. Whether it's the Managing Owner or the Designated Manager, that person must dedicate their full-time efforts to managing and promoting the Cool Binz Business. They are also prohibited from engaging in any conflicting business activities without Cool Binz's prior written consent.
For a prospective franchisee, this means that Cool Binz has the right to insist on a specific manager for the business, even if the franchisee themselves would prefer to be the primary manager. This could impact the franchisee's operational control and potentially add to their expenses if they need to hire and train a Designated Manager acceptable to Cool Binz. It is important to note that the FDD does not specify the exact conditions under which Cool Binz would require a Designated Manager, so prospective franchisees should seek clarification from the franchisor on this matter.