How does Cool Binz determine the repurchase price of bins equipment that are over 5 years old?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
| Time Elapsed After Original Purchase | Percentage of Bins Equipment Price |
|---|---|
| Under 1 year | 65% |
| Under 2 Years | 50% |
| Under 3 Years | 35% |
| Under 4 Years | 20% |
| Under 5 Years | 15% |
| Over 5 Years | Offer After Inspection |
If this is a Transfer Term, you are required to purchase the Initial Promotional Package but may not be required to purchase the entire Initial Package. However, we reserve the right to require you to purchase additional equipment if the existing equipment is deficient in any way. If this is a Renewal Term or if you are purchasing an additional franchise agreement, you are not required to purchase the Initial Package or the Initial Promotional Package.
Prior to opening your COOL BINZ Business, you must also pay a fee of $5,000 for two days of initial assembly and set-up of the Equipment needed for the operation of the COOL BINZ Business (the "Container Assembly and Set-Up Fee"). The Container Assembly and Set-Up Fee is deemed fully earned upon payment and non-refundable under any circumstances.
C. ROYALTY.
You shall pay us a monthly royalty (the "Royalty") equal to nine percent (9%) of Gross Sales, as defined below in Section 2.D. Beginning in month thirteen (13) of operations, if the percentage Royalty is less than $1,000, then you will be required to pay the minimum monthly royalty of $1,000 instead. You shall pay us a Royalty equal to nine percent (9%) of your Gross Sales until your Gross Sales exceed $500,000 in a calendar year. Once you exceed $500,000 in Gross Sales in a calendar year, your Royalty will decrease to eight percent (8%) of Gross Sales for the remainder of the calendar year, plus the entire following calendar year. If you fail to achieve over $500,000 in Gross Sales in the following calendar year, your Royalty will revert to 9%. If for any reason you are not in compliance with the Franchise Agreement, we reserve the right to reset the Royalty to nine percent (9%) for the remainder of the calendar year, at which time you must re-qualify for the discounted Royalty the following year.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the repurchase price for bins equipment older than 5 years is determined by an offer made after an inspection. The percentage of the original price that Cool Binz will offer depends on the condition of the bins, assuming reasonable wear and tear and regular maintenance.
If any components of the original bins are missing, or if there is damage or excessive wear and tear, Cool Binz reserves the right to adjust the repurchase price accordingly. This means that the actual amount a franchisee receives for their bins could be lower than expected if the bins are not well-maintained or if parts are missing.
This policy provides Cool Binz with the flexibility to assess the actual value of older equipment based on its condition, which protects their investment and ensures that repurchased equipment meets their standards. For a franchisee, this highlights the importance of maintaining the bins in good condition to maximize the potential repurchase price when they are no longer needed.