Under what condition might Cool Binz waive the Non-Compliance Fee?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
ny applicable broker fees, whether incurred by you or by your predecessor franchisee.
M. NON-COMPLIANCE FEE.
You are not permitted to perform services or advertise outside of your territory, as defined above, "Out-of-Territory Conduct". We have the right to assess our ten-current fine amount for conduct that violates the terms of this Agreement, including but not limited to, Out-of-Territory Conduct, use of unapproved equipment in operating your Business, selling or using unapproved Products or Services in your Business, misuse of the Marks, use of unapproved marketing materials, and other violations of your duties under this Franchise Agreement. We may charge you $5,000 per violation (the "Non-Compliance Fee"), or in the case of Out-of-Territ
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, Cool Binz reserves the right to waive the Non-Compliance Fee if an incident occurs. The Non-Compliance Fee is a charge of $5,000 per violation, but can be up to $10,000 per repeated occurrence for Out-of-Territory Conduct.
This waiver is at the discretion of Cool Binz, meaning they are not obligated to waive the fee in any circumstance. The FDD does not specify what types of incidents might warrant a waiver, leaving the decision entirely up to Cool Binz.
As a prospective franchisee, it's important to understand that while there is a possibility of a waiver, it is not guaranteed. Franchisees should aim to always be in compliance to avoid the fee altogether. It would be prudent for a potential franchisee to inquire with Cool Binz about specific examples of situations where the Non-Compliance Fee has been waived in the past to better understand the franchisor's perspective.