Under what conditions can the transferee be required to purchase an Initial Package, Promotional Package, or equipment when transferring a Cool Binz franchise?

According to Cool Binz's 2025 Franchise Disclosure Document, the transferee in a franchise transfer may be required to purchase certain items at Cool Binz's discretion. Specifically, Cool Binz may require the transferee to 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.

This requirement is contingent upon Cool Binz's assessment of whether these purchases are necessary to ensure the Cool Binz business complies with the current System Standards and is in well-maintained condition. This determination is made at Cool Binz's sole discretion, giving them considerable latitude in deciding what the transferee must purchase.

For a prospective Cool Binz franchisee, this means that if they plan to sell their franchise in the future, the potential buyer might face significant additional costs to meet Cool Binz's standards. This could affect the sale price and the attractiveness of the franchise to potential buyers. It is important for franchisees to maintain their business in good condition and up to the current System Standards to minimize the likelihood of these required purchases for a transferee. Also, if this is a Transfer Term, the franchisee is required to purchase the Initial Promotional Package but may not be required to purchase the entire Initial Package. However, Cool Binz reserves the right to require the franchisee to purchase additional equipment if the existing equipment is deficient in any way.