Under what conditions can Cool Binz require a transferee to purchase an Initial Package?

According to Cool Binz's 2025 Franchise Disclosure Document, Cool Binz has the discretion to require a transferee to purchase all or a portion of the Initial Package under certain conditions. Specifically, Cool Binz may require the transferee to purchase the Initial Package, the Initial Promotional Package, new or refurbished equipment, inventory, new vehicles/vehicle wraps, and complete remodeling, refurbishing, renovation, or upgrades.

This requirement is contingent upon Cool Binz determining, in its sole discretion, that such purchases or upgrades are necessary to ensure the Cool Binz business complies with the current System Standards and is in well-maintained condition. This means that if Cool Binz believes the existing business being transferred does not meet its standards for appearance, equipment, or overall condition, the transferee may be obligated to invest further to bring it up to par.

However, if the transfer occurs during a Transfer Term, the transferee is required to purchase the Initial Promotional Package but may not be required to purchase the entire Initial Package. Cool Binz retains the right to mandate the purchase of additional equipment if the existing equipment is deficient in any way. This suggests that the requirements for a transferee can vary depending on the timing and circumstances of the transfer, with Cool Binz maintaining flexibility to ensure brand consistency and quality across all franchise locations.