How does Cool Binz account for the costs incurred to obtain a franchise agreement?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
Fee*
Upon signing of the Franchise Agreement, you must pay an initial franchise fee of $59,900 (the "Initial Franchise Fee"). The Initial Franchise Fee is deemed fully earned upon payment and non-refundable under any circumstances. The Initial Franchise Fee purchases a Territory that will encompass approximately 350,000 to 450,000 people to a maximum of 500,000 people ("Territory").
For a Territory with populations greater than 450,000 people, the Initial Franchise Fee will equal the Initial Franchise Fee above, plus $0.20 for each person over 450,000 (the "Additional Fee").
For example, the Initial Franchise Fee for a Territory with a population of 500,000 will be computed as follows:
$$$59,900 + (50,000 \times .20) = $69,
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, an initial franchise fee is required upon signing the Franchise Agreement. The standard initial franchise fee is $59,900, which grants the franchisee a territory encompassing approximately 350,000 to 450,000 people, up to a maximum of 500,000. This fee is considered fully earned by Cool Binz upon payment and is non-refundable under any circumstances.
For territories exceeding 450,000 in population, Cool Binz charges an additional fee of $0.20 for each person over that threshold. For instance, a territory with 500,000 people would incur an initial franchise fee of $69,900, calculated as $59,900 plus (50,000 x $0.20). This structure ensures that the initial investment aligns with the potential market size of the territory.
Prospective Cool Binz franchisees should note that the initial franchise fee provides the right to operate a Cool Binz business within a defined territory but does not cover other costs associated with starting the business. These additional costs are detailed separately in the FDD and may include expenses for training, equipment, software, and marketing. Understanding the full scope of required investments is crucial for assessing the financial feasibility of the franchise.