What is the defined territory for the operation of a Cool Binz business?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
Territory: The specific area where the COOL BINZ Business is to be operated, which consists of a set of zip codes.
D. TERRITORY.
You must also select your business office site within the Territory ("Office Site"), and we must approve such Office Site in our sole discretion. You may not locate your office outside of the Territory without our express written consent and if you do so, then we may charge you a Non-Compliance Fee. If your Office Site is located outside of the Territory (pursuant to our prior permission), you agree that if a COOL BINZ franchisee purchases the Territory where your Office Site is located, or if a Company Store is opened, you will move the location of your Office Site to another site approved in writing by us, unless you have obtained written authorization from us, as well as from the new COOL BINZ franchisee.
You may relocate the Office Site within the Territory at your sole discretion but must immediately notify us of the change in address.
E. RIGHTS WE RESERVE.
We retain, as we deem appropriate, the rights to:
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- establish, and allow other COOL BINZ franchisees to establish, COOL BINZ Businesses at any location outside of the Territory on any terms and conditions, but subject to the same marketing restrictions upon their servicing in the Territory that you are subject to when servicing in their Territory; under no circumstances will another COOL BINZ Business or Company Store advertise in print media, door-to-door, mass electronic communication, or direct web-based marketing in the Territory, without your prior written consent, except only as provided in Section 1.D and 2.F of this Agreement;
Upon signing of the Franchise Agreement, you must pay an initial franchise fee of $59,900 (the "Initial Franchise Fee"). 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:
$$$59,900 + (50,000 \times .20) = $69,900$$
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the territory granted to a franchisee is defined as the specific area where the Cool Binz Business is to be operated, consisting of a set of zip codes. The initial franchise fee purchases a territory that will encompass approximately 350,000 to 450,000 people to a maximum of 500,000 people.
For territories exceeding 450,000 people, Cool Binz charges an additional fee of $0.20 for each person over that limit. For example, a territory with 500,000 people would incur an initial franchise fee of $69,900, calculated as $59,900 plus $0.20 for each of the 50,000 people exceeding the 450,000 base.
Cool Binz franchisees must select a business office site within their designated territory, subject to the franchisor's approval. Relocation of the office site within the territory is permitted at the franchisee's discretion, provided Cool Binz is notified of the address change. However, franchisees are restricted from advertising in print, media, door-to-door, mass electronic communication, or direct web-based advertising within another franchisee's territory or a Company Store's territory. Cool Binz retains the right to establish Cool Binz Businesses outside the franchisee's territory and to engage in regional and national account relationships, even if the offices are located within the franchisee's territory.