What financial qualifications must a Cool Binz franchisee meet to be eligible for a renewal term?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
ay be undertaken or conducted through such legal entity.
11. EXPIRATION OF THIS AGREEMENT.
A. YOUR RIGHTS UPON EXPIRATION OF THIS AGREEMENT.
Upon the expiration of this Agreement, provided that during its term you complied substantially with its provisions, including the timely payment of all fees and royalties, you may continue your COOL BINZ Business for one (1) additional term of ten (10) years (a "Renewal Term" (as previously defined)).
In order to be awarded a Renewal Term, you must:
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- Be in substantial compliance with this Agreement, or any other ancillary agreement then in effect between you and us including but not limited to, the timely payment of all fees and compliance with System Standards;
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Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, to be awarded a renewal term, a franchisee must meet certain financial requirements. Specifically, if this is a renewal term, the franchisee will be required to meet the Minimum Gross Sales requirement for the greater than 48-month level for the first year of the Renewal Term. For all subsequent years of the Renewal Term, the franchisee must achieve Minimum Gross Sales growth of at least three percent (3%) per year, each year.
In addition to meeting the Minimum Gross Sales requirements, the franchisee must have complied substantially with all provisions of the Franchise Agreement during its initial term, including the timely payment of all fees and royalties. Cool Binz also retains the right to require the franchisee to purchase new or additional equipment, remodel or refurbish their vehicle or retail space, or perform other renovations at the franchisee's sole expense as a condition of entering into a Renewal Term.
These financial and compliance requirements ensure that franchisees seeking a renewal term are operating a successful and well-maintained Cool Binz business, which protects the brand's reputation and the interests of all franchisees. Prospective franchisees should carefully consider these requirements and ensure they have a solid plan for meeting the Minimum Gross Sales targets and maintaining compliance with the Franchise Agreement to secure a renewal term.