Does Cool Binz currently have purchase agreements or arrangements with suppliers for the benefit of franchisees?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
Aside from certain intangible benefits associated with group buying, you receive no material franchise benefits (for example, the award of additional franchises or a renewal term) for using an approved supplier. We do not currently have or negotiate purchase agreements or arrangements with suppliers for the benefit of franchisees, but we may do so in the future.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 31–34)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, Cool Binz does not currently have purchase agreements or arrangements with suppliers that would specifically benefit franchisees. The FDD specifies that while there may be some intangible benefits related to group buying, franchisees do not receive material benefits such as additional franchise awards or renewal terms for using approved suppliers. However, Cool Binz retains the option to establish such agreements in the future.
Cool Binz requires franchisees to purchase certain items, such as the initial package including the truck, bins, and mule, directly from them. Cool Binz also reserves the right to designate approved suppliers for additional trucks and other equipment, inventory, and services used in the operation of the Cool Binz business. Franchisees are generally required to use these approved suppliers unless otherwise stated in writing by Cool Binz.
In the fiscal year ending December 31, 2024, Cool Binz and its affiliates derived $821,158.63, representing 91.85% of their revenue from required purchases and leases. While no designated suppliers currently make payments to Cool Binz based on franchisee purchases, Cool Binz reserves the right to mark up and earn a profit from products purchased from them, their affiliates, or their suppliers. Franchisees are also responsible for costs associated with insurance, and while they are not currently obligated to purchase insurance from a specific provider, Cool Binz reserves the right to specify a required provider in the future.
Prospective franchisees should be aware that Cool Binz maintains control over the supply chain and may profit from required purchases. While there are currently no specific purchase agreements in place to benefit franchisees, this could change in the future. It is important for potential franchisees to discuss the potential for future purchase agreements and how they might benefit from them with Cool Binz.