Under what conditions can Cool Binz charge a 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-Territory Conduct, a fine of up to $10,000 per repeated occurrence. We reserve the right to waive the fine if the incident
is deemed accidental. This fee may be in lieu or in connection with default and/or termination of this Franchise Agreement, or any other available remedies hereunder.
O. NORA FEE.
We may provide services to national and/or regional accounts that require centralized overview and support, and for purposes of responding to requests and referrals for Services through our franchise system, managing those relationships, answering calls placed to our toll-free number or a national account on-line access system. In that case, we may charge you a National or Regional Accounts Fee ("NORA Fee") of up to five percent (5%) of Gross Sales generated by the account.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, a Non-Compliance Fee may be assessed under various conditions. Cool Binz franchisees are not allowed to perform services or advertise outside of their defined territory, which is considered "Out-of-Territory Conduct." Violations of the franchise agreement can result in fines.
The specific violations that can incur a Non-Compliance Fee include, but are not limited to, Out-of-Territory Conduct, using unapproved equipment, selling or using unapproved products or services, misusing Cool Binz's trademarks, using unapproved marketing materials, and other breaches of the franchisee's duties as outlined in the Franchise Agreement. The standard Non-Compliance Fee is $5,000 per violation. However, for repeated instances of Out-of-Territory Conduct, the fine can be up to $10,000 per occurrence. Cool Binz retains the right to waive the fine depending on the circumstances of the incident.
Additionally, if a Cool Binz franchisee locates their business office outside of their designated territory without prior written consent from Cool Binz, they may also be charged a Non-Compliance Fee. This policy ensures that franchisees adhere to the geographical boundaries and operational standards set by Cool Binz to maintain consistency and prevent conflicts within the franchise system. Prospective franchisees should carefully review the Franchise Agreement to fully understand all the conditions that could lead to a Non-Compliance Fee and ensure they can comply with these requirements.