Are the financial statements for Cool Binz itself included in the FDD, or are they for its affiliate?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
I have received a Franchise Disclosure Document dated March 28, 2025that included the following Exhibits:
- A Form of Agreements
- A-1 Franchise Agreement and Addenda
- A-2 Confidentiality / Non-Disclosure
Agreement
A-3 - General Release(s) – Upon Renewal or
Assignment B – Financial Statements
- C State Administrators/ Agents for Service of Process
- D State Addenda to the Disclosure Document
E – List of Franchisees
F – List of Former Franchisees
G – 1 – Franchise Organizations
G – 2 – Independent Franchisee Associations
H – Disclosure Acknowledgement Questionnaire
I – Operations Manual Table of Contents
J - State Effective Dates Page
K - Receipts
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 62)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, Exhibit B includes the financial statements. However, the excerpt does not specify whether these financial statements are for Cool Binz International, LLC (the franchisor) itself, or for an affiliate of Cool Binz.
It is standard practice for a franchise disclosure document to include the franchisor's financial statements so prospective franchisees can evaluate the franchisor's financial stability. The financial statements provide insights into the franchisor's revenue, expenses, assets, and liabilities, which can help a franchisee assess the franchisor's ability to support its franchisees and meet its obligations.
To clarify whether the financial statements provided in Exhibit B are for Cool Binz International, LLC, or an affiliate, a prospective franchisee should review Exhibit B within the FDD. If it is not clear, they should ask Cool Binz directly for confirmation and clarification. Understanding the financial health of the specific entity they will be franchising with is crucial for making an informed investment decision.