Does Cool Binz charge a prepayment penalty for its financing?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
| Source of Financing | Us |
|---|---|
| Amount Financed | Up to 50% |
| Down Payment | Minimum of 50% |
| Term (number of years) | Up to 36 months |
| Rate of Interest plus | 9% |
| Finance Charge | |
| Monthly Payment | Varies depending on amount financed and term. |
| Prepayment Penalty | None |
| Security Required | Personal Guaranty |
| Guaranty | Personal Guaranty |
| Liability upon Default | Termination or other loss of Franchise; you must also pay entire amount due and our attorneys' fees and court costs in collecting debt |
| Loss of Legal Rights Upon Default | You must waive presentation for payment, demand, notice of non-payment, protest, and all other demands and notices required by law (statutory or otherwise) |
Source: Item 10 — FINANCING (FDD pages 35–36)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, franchisees are allowed to prepay their promissory note without incurring any penalties. Cool Binz may offer financing for a portion of the Initial Franchise Fee, Initial Equipment Package, and the Initial Promotional Package if the franchisee meets their qualifications. Cool Binz does not offer financing for the purchase of the truck.
Cool Binz can finance up to 50% of the initial fees, requiring a minimum 50% down payment. The term of the note can be up to 36 months with a 9% interest rate. The security required is a personal guaranty.
In the event of default, Cool Binz can terminate the franchise agreement or pursue other legal avenues to recover the debt, including attorney's fees and court costs. The franchisee must also waive certain legal rights, such as the right to demand notice of non-payment. This is a fairly standard practice in franchising, as it allows the franchisor to recoup their losses more efficiently if a franchisee fails to meet their financial obligations.