Under what conditions can modifications to the Cool Binz agreement be effective?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
the covenant, you and we agree that the covenant will be enforced to the fullest extent permissible under the laws and public policies applied in the jurisdiction whose law is applicable to the validity of the covenant.
If any applicable and binding law or rule of any jurisdiction requires a greater prior notice of termination, or refusal to renew, than this Agreement, the prior notice or other action required by such law or rule will be substituted for the notice requirements of this Agreement. Such modification to this Agreement will be effective only in such jurisdiction and this Agreement will otherwise be enforced as originally made and entered into in all other jurisdictions.
B. WAIVER OF OBLIGATIONS.
Either of us may, by written notice, unilaterally waive or reduce any obligation or restriction of the other party under this Agreement. The waiver or reduction may be revoked at any time, for any reason, on ten (10) days' written notice.
C. FEES AND EXPENSES.
If you are in breach or default of any monetary or non-monetary material obligation under this Agreement or any related agreement between you and us and/or our affiliates, and we engage an attorney to enforce our rights (whether or not formal judicial proceedings are initiated), you must pay all reasonable attorneys' fees, court costs and litigation expenses we incur.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, modifications to the franchise agreement can be effective under specific conditions. The document states that if any applicable and binding law or rule requires a greater prior notice of termination, or refusal to renew, than the agreement stipulates, the requirements of such law or rule will supersede the agreement's notice requirements. However, this modification is only effective in the specific jurisdiction where the law or rule applies; in all other jurisdictions, the original agreement remains in effect.
Additionally, Cool Binz may unilaterally waive or reduce any obligation or restriction of the franchisee through written notice. This waiver or reduction can be revoked at any time, for any reason, by providing ten days' written notice. This allows Cool Binz some flexibility in adjusting requirements for franchisees, but it also introduces a degree of uncertainty, as these changes can be reversed with relatively short notice.
Furthermore, Cool Binz may periodically add to, modify, phase out, or change the System Standards, including adopting new trademarks, uniforms, technologies, products, equipment, services, and strategies. Franchisees are required to implement these changes at their own expense. These modifications are aimed at reflecting changing market conditions and enhancing the operational efficiency and public image of the Cool Binz system. Franchisees should be aware that they will need to adapt to these changes and bear the associated costs to remain compliant with the franchise agreement.
In essence, modifications to the Cool Binz franchise agreement can arise from legal requirements in specific jurisdictions, waivers issued by Cool Binz, or changes to the System Standards. Franchisees must stay informed of these potential modifications and be prepared to adapt their operations accordingly.