Under what conditions can a Cool Binz franchise agreement not be renewed, and what compensation requirements apply according to Section 20 of the Illinois Franchise Disclosure Act?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
this Agreement. We must give you notice (referred to as "Our Notice"), not more than 45 days after we receive your notice, of our decision in accordance with Paragraph A of this Section:
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- to award you a renewal franchise agreement;
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- to award you a renewal franchise agreement on the condition that you correct any provisions of this Agreement with which you are not in compliance, which may require you to attend and successfully complete additional trainings; or
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- not to award you a renewal franchise agreement based on our determination that you have not substantially complied with this Agreement during its term.
If applicable, Our Notice will state the actions you must take to correct operating deficiencies and a reasonable time period in which these deficiencies are to be corrected.
If we elect not to award you a renewal franchise agreement, Our Notice will describe the reasons for our decision. Your right to a renewal franchise agreement is subject to your continued compliance with all of the terms and conditions of this Agreement through the date of its expiration, in addition to your compliance with the obligations described in Our Notice.
C. AGREEMENTS/RELEASES.
If you satisfy all of the other conditions to the awarding of a Renewal Term, you must sign the then-current franchise agreement and any ancillary agreements for COOL BINZ Businesses, which may include a different Royalty and/or or Territory. You and we further must sign a mutual general release, in a form satisfactory to us, of any and all claims against either of us and our respective shareholders, officers, directors, employees, agents, successors, and assigns. Such requirement to sign a general release is subject to change in our sole discretion.
Notwithstanding any provision to the contrary, at our request, you will must upgrade and remodel the COOL BINZ Business at your sole expense to conform to the then-current Operations Manual (the completion of such upgrades shall be a condition of you receiving such Renewal Term). Further, you must submit proof to us that you have the right to operate the COOL BINZ Business at the Office Site for the Renewal Term.
12. TERMINATION OF AGREEMENT.
A. AUTOMATIC TERMINATION WITHOUT NOTICE.
This Agreement will automatically terminate without notice or an opportunity to cure upon the occurrence of any of the following:
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, Cool Binz has the option not to award a renewal franchise agreement if they determine that the franchisee has not substantially complied with the existing agreement during its term. If Cool Binz decides not to renew the agreement, they will provide a notice describing the reasons for their decision. The franchisee's right to a renewal is contingent upon their continued compliance with all terms and conditions of the agreement through the expiration date, as well as compliance with any obligations outlined in Cool Binz's notice.
To be eligible for a renewal term, a Cool Binz franchisee must sign the then-current franchise agreement and any related ancillary agreements, which may include different royalty and territory terms. Both parties must also sign a mutual general release of claims. Cool Binz may also require the franchisee to upgrade and remodel the Cool Binz Business at their own expense to meet the standards in the current Operations Manual as a condition of renewal. Additionally, the franchisee must provide proof that they have the right to operate the Cool Binz Business at the Office Site for the renewal term.
The Illinois Franchise Disclosure Act addresses dispute resolution and choice of law. Specifically, Section 4 of the Act stipulates that any provision in a franchise agreement that designates jurisdiction or venue outside of Illinois is void. However, the agreement may still provide for arbitration in a venue outside of Illinois. The FDD excerpt does not specify any compensation requirements under Section 20 of the Illinois Franchise Disclosure Act regarding non-renewal of the Cool Binz franchise agreement.