What may the Cool Binz earnings claim figures not reflect?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
The earnings claim figures may not reflect the full costs of sales, operating expenses, or other costs or expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit. You should conduct an independent investigation of the costs and expenses you will incur in operating your franchise business. Franchisees or former franchisees, listed in the offering circular, may be one source of this information.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the earnings claim figures provided may not represent the complete financial picture for a franchisee. Specifically, the figures may not account for all the costs of sales, operating expenses, or other costs that a franchisee will incur. These costs must be subtracted from gross revenue or gross sales to determine net income or profit.
This disclosure is a standard practice in franchising, intended to encourage prospective franchisees to conduct their own thorough financial investigation. Cool Binz advises potential franchisees to independently investigate all costs and expenses associated with operating a franchise.
To facilitate this investigation, Cool Binz suggests that prospective franchisees consult with current or former franchisees, whose contact information is listed in the Franchise Disclosure Document. This allows potential franchisees to gain first-hand insights into the actual costs and expenses involved in running a Cool Binz franchise, ensuring they have a realistic understanding of the potential profitability.