Under the Cool Binz franchise agreement, can a franchisee consolidate proceedings with any other proceeding between Cool Binz and a third party?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
THE PARTIES AGREE THAT ALL PROCEEDINGS ARISING OUT OF OR RELATED TO THIS AGREEMENT, OR THE SALE OF THE COOL BINZ BUSINESS, WILL BE CONDUCTED ON AN INDIVIDUAL, NOT A CLASS-WIDE BASIS, AND THAT ANY PROCEEDING BETWEEN YOU, YOUR OWNERS AND US OR OUR AFFILIATES/OFFICERS/EMPLOYEES MAY NOT BE CONSOLIDATED WITH ANY OTHER PROCEEDING BETWEEN US AND ANY OTHER THIRD PARTY.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the franchise agreement specifies that any legal proceedings related to the agreement or the sale of the Cool Binz business will be conducted on an individual basis. This means a franchisee cannot consolidate their legal proceedings with any other proceedings between Cool Binz and a third party.
This requirement for individual proceedings extends to any legal actions involving the franchisee, their owners, Cool Binz, or Cool Binz's affiliates, officers, and employees. The franchise agreement explicitly prohibits the consolidation of these proceedings with any other legal actions involving Cool Binz and a third party.
This clause ensures that each franchisee's legal matters are handled separately, preventing the possibility of a single legal action affecting multiple franchisees or third parties. It also allows Cool Binz to manage legal disputes on a case-by-case basis, without the complexity of consolidated proceedings.