factual

Does the Cool Binz FDD include any pro forma financial statements?

Cool_Binz Franchise · 2025 FDD

Answer from 2025 FDD Document

We require you to use the COOL BINZ Software, or other Required Software as we designate, for maintaining Customer records for the COOL BINZ Business. We have confidential access to your databases and related information from the COOL BINZ Software, which we use to compute the Royalty due on Gross Sales, and to make other evaluations and verifications. In addition, you must establish and maintain, at your expense, an accounting system that conforms to the requirements and formats that, from time to time, we prescribe. You shall furnish to us, in the manner and format that we require:

    1. an income statement, profit and loss statement, and cash flow statement within 48 hours of request;
    1. on the 5th day of each month, a report of Gross Sales obtained in the prior month;
    1. within 10 days of our request, an unaudited income statement for the requested time period in a form satisfactory to us, and such additional reports as we may require;
    1. within 90 days after the close of your fiscal year, a complete income statement and other financial statements in a form we may prescribe in our sole discretion;
    1. within ten days of our request, exact copies of any state, federal, or other income tax returns covering the operation of the COOL BINZ Business, as well as the state, federal and other income tax returns from your existing business(es) that provide leasing of portable storage containers, which we may need to review to assure all Gross Sales have been accurately reported;
    1. by November 1 of each year, financial projections and a marketing plan for the upcoming year in the form we may prescribe in our sole discretion; and
    1. any other reports we may require in the future.

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 62)

What This Means (2025 FDD)

According to Cool Binz's 2025 Franchise Disclosure Document, the document does not include pro forma financial statements. However, Cool Binz does require franchisees to provide financial projections and a marketing plan for the upcoming year by November 1st of each year. These projections must be in a format prescribed by the franchisor.

Cool Binz also requires franchisees to use the COOL BINZ Software, or other designated software, for maintaining customer records. The franchisor has confidential access to these databases to compute royalties and make evaluations. Franchisees must also maintain an accounting system that conforms to the franchisor's requirements.

Furthermore, franchisees are obligated to furnish various financial statements and reports to Cool Binz, including income statements, profit and loss statements, cash flow statements, and monthly gross sales reports. They must also provide copies of state, federal, and other income tax returns. The franchisor can disclose data derived from these reports without identifying the franchisee, unless they have written consent.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.