Are the financial statements for Cool Binz audited?

According to Cool Binz's 2025 Franchise Disclosure Document, franchisees are generally not required to provide audited financial statements. However, Cool Binz retains the right to demand them under specific circumstances. Specifically, Cool Binz can require a franchisee to have audited financial statements prepared annually if the franchisee fails to comply with any provision of the Franchise Agreement.

This means that while a new Cool Binz franchisee may not initially need to bear the expense and complexity of a formal audit, maintaining full compliance with all terms of the agreement is crucial. Failure to do so could trigger a requirement for audited financials, adding a significant cost to the business.

It is important for prospective franchisees to understand what constitutes 'compliance' according to Cool Binz. This includes adhering to reporting schedules, using approved software, and meeting operational standards. Understanding these requirements upfront will help franchisees avoid potential audit mandates and maintain a positive relationship with Cool Binz.

While the Brand Marketing Fund does not have to be independently audited, Cool Binz will prepare an annual statement of contributions and expenditures for the fund, available to franchisees upon written request within 120 days of the fiscal year's end. This provides some transparency regarding the fund's financial activity, even without a formal audit.