Under the Equipment Sales and Security Agreement, what is the Cool Binz franchisee's responsibility regarding the disposal of the equipment?

According to Cool Binz's 2025 Franchise Disclosure Document, the franchisee has specific responsibilities regarding the equipment upon expiration or termination of the Franchise Agreement. Cool Binz requires the franchisee to cooperate with them to repurchase all or some of the equipment, according to the terms outlined in the Franchise Agreement. However, there is an exception: the franchisee can arrange to sell the equipment to another Cool Binz franchisee, but this requires Cool Binz's consent.

This means that as a Cool Binz franchisee, you cannot simply dispose of the equipment as you see fit when your agreement ends. You must first offer Cool Binz the opportunity to repurchase it. Alternatively, you can find another franchisee to buy the equipment, but Cool Binz must approve the transaction. This ensures that the equipment remains within the Cool Binz system and meets their standards.

It is important to note that the FDD excerpt does not specify the exact terms under which Cool Binz will repurchase the equipment or the criteria they will use to approve a sale to another franchisee. As a prospective franchisee, you should carefully review the Franchise Agreement for these details and discuss them with Cool Binz to fully understand your obligations and options regarding equipment disposal.