Under what condition are transfer fees collectable by Cool Binz in Washington?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event you were awarded your COOL BINZ Business as a result of your purchase of all or substantially all of the assets of the COOL BINZ Business owned by a previous franchisee in the Territory, you must pay us the following fees if they are not timely paid by your predecessor, or negotiated in your purchase agreement:
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- Our then-current Transfer Fee to defray expenses we incur in the transfer; and
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- Any and all outstanding Royalties, amounts owed for purchases from us, 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 you or by your predecessor franchisee.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, if a new franchisee is awarded a Cool Binz business as a result of purchasing the assets of a previous franchisee, Cool Binz can collect transfer fees if the previous franchisee did not pay them in a timely manner. This protects Cool Binz from outstanding debts when a franchise changes hands.
Specifically, the new franchisee must pay Cool Binz's then-current transfer fee to cover the expenses Cool Binz incurs during the transfer process. Additionally, the new franchisee is responsible for any outstanding royalties, amounts owed for purchases from Cool Binz, late payment fees, late report fees, interest fees, NSF fees, and any other fees owed by the previous franchisee, plus interest. This ensures that Cool Binz receives all outstanding payments, regardless of the change in ownership.
This condition applies unless the payment of these fees is otherwise negotiated in the purchase agreement between the new and previous franchisees. Therefore, prospective Cool Binz franchisees in Washington should carefully review any purchase agreements and ensure that the responsibility for these fees is clearly defined to avoid unexpected financial obligations.