Under what conditions does Cool Binz initiate collection procedures on behalf of a franchisee?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
We retain, as we deem appropriate, the right to contact Customers who are delinquent in their payment of 180 days or more, initiate collection procedures on your behalf, and take the full amount of any Royalties owed to us from any amounts collected and apply collection fees up to an additional ten percent (35%) (the "Collection Fee") of the amounts collected on your behalf. We will credit you with any amounts collected, net of any Royalties and Collection Fees. You may not sue or otherwise hold us liable in any way for our pursuit of these collection procedures.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, Cool Binz retains the right to contact customers who are delinquent in their payments for 180 days or more. If Cool Binz deems it appropriate, they can initiate collection procedures on behalf of the franchisee.
If Cool Binz initiates these collection procedures, they will take the full amount of any royalties owed to them from the amounts collected. Additionally, Cool Binz will apply collection fees of up to an additional ten percent (10%) of the amounts collected on behalf of the franchisee. After deducting royalties and collection fees, Cool Binz will credit the remaining amount to the franchisee.
The Franchise Agreement stipulates that the franchisee may not sue or otherwise hold Cool Binz liable for their pursuit of these collection procedures. This means the franchisee bears the risk if Cool Binz's collection efforts are unsuccessful or if the franchisee disagrees with their approach.