Can Cool Binz change the 'then-current' fees during the term of the agreement?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
All fees listed as "then-current" fee may change during the term of the Agreement, based on increases in Consumer Price Index, market and industry rates for the specific item, or other factors impacting the sufficiency of the fee to provide the service or product. Because these market conditions are unpredictable, there is no stated range for these fees.
Source: Item 6 — OTHER FEES (FDD pages 19–27)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, certain fees designated as "then-current" are subject to change during the term of the Franchise Agreement. These changes can be influenced by factors such as increases in the Consumer Price Index, prevailing market and industry rates for specific items, or other elements that affect the adequacy of the fee to cover the service or product provided.
For a prospective Cool Binz franchisee, this means that the fees listed as "then-current" in Item 6 of the FDD are not fixed and can fluctuate over time. Due to the unpredictable nature of market conditions, there is no stated range for these fees. This introduces an element of uncertainty in projecting the overall cost of operating a Cool Binz franchise.
It is important for potential franchisees to understand that while some fees are fixed, others can change based on external economic factors. This could impact the profitability of the franchise and should be carefully considered when evaluating the investment. Prospective franchisees should inquire about the historical frequency and magnitude of changes to these "then-current" fees to better assess the potential financial implications.