How is the additional fee calculated for a Cool Binz territory with a population exceeding 450,000?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
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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:
$$$59,900 + (50,000 \times .20) = $69,900$$
As the Territories are generally defined by ZIP codes, we reserve the right not to charge the Additional Fee if we are unable to meet the 350,000 population count without exceeding due to highly populated areas. Each Territory will have a maximum of 500,000 people. The purchase of more than 500,000 in population in the aggregate at any time during the term of the Agreement will require the payment of an additional Initial Franchise
Source: Item 5 — INITIAL FEES (FDD pages 17–19)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the initial franchise fee for a territory with a population greater than 450,000 people is calculated by adding an additional fee to the standard initial franchise fee. The standard initial franchise fee is $59,900 for a territory encompassing approximately 350,000 to 450,000 people, up to a maximum of 500,000 people.
For each person exceeding the 450,000 population mark, Cool Binz charges an additional $0.20. Therefore, the 'Additional Fee' is calculated by multiplying the number of people over 450,000 by $0.20 and adding that result to the initial franchise fee of $59,900.
For example, if a territory has a population of 500,000, the additional fee would be calculated as follows: 50,000 (the number of people exceeding 450,000) multiplied by $0.20, which equals $10,000. This $10,000 is then added to the base initial franchise fee of $59,900, resulting in a total initial franchise fee of $69,900. The FDD also notes that Cool Binz reserves the right not to charge the additional fee if they cannot meet the 350,000 population count without exceeding 450,000 due to highly populated areas.