Under what conditions might a Cool Binz transferee be required to purchase the Initial Package?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
nsfer;
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- the transfer must be made in compliance with any laws that apply to the transfer, including state and federal laws governing the offer and sale of franchises; and
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- if required by us, in our sole discretion, transferee must purchase all or a portion of the Initial Package, the Initial Promotional Package, new or refurbished equipment, inventory, new vehicles/vehicle wraps, and complete remodeling, refurbishing, renovation or upgrades required by Franchisor, etc. to ensure the COOL BINZ Business is in compliance with our current System Standards and in wellmaintained condition.
We shall have 60 days from the date of the written notice to approve or disapprove in writing of your proposed assignment.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, a transferee may be required to purchase all or a portion of the Initial Package under certain conditions. Specifically, Cool Binz has the sole discretion to 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 is to ensure the Cool Binz business complies with the current System Standards and is in well-maintained condition.
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. Conversely, if the transfer occurs during a Renewal Term or if the transferee is purchasing an additional franchise agreement, they are not required to purchase either the Initial Package or the Initial Promotional Package.
This discretion allows Cool Binz to maintain brand consistency and quality across all franchise locations. For a potential franchisee, this means that the cost of taking over an existing franchise could vary significantly depending on the condition of the business and Cool Binz's assessment of what is needed to bring it up to standard. It is important for a prospective transferee to carefully evaluate the condition of the business being transferred and to discuss with Cool Binz what specific requirements, including potential purchases of the Initial Package or other items, will be imposed as a condition of the transfer.