What is the formula for increasing fees for a Cool Binz franchise in Washington?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
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For a Territory with populations greater than 450,000 people, the Initial Franchise Fee will equal the Initial Franchise Fee above, plus $0.20 for each person over 450,000 (the "Additional Fee").
For example, the Initial Franchise Fee for a Territory with a population of 500,000 will be computed as follows:
$$$59,900 + (50,000 \times .20) = $69,900$$
As the Territories are generally defined by ZIP codes, we reserve the right not to charge the Additional Fee if we are unable to meet the 350,000 population count without exceeding due to highly populated areas. Each Territory will have a maximum of 500,000 people. The purchase of more than 500,000 in population in the aggregate at any time during the term of the Agreement will require the payment of an additional Initial Franchise Fee.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
Based on the 2025 Cool Binz Franchise Disclosure Document, the document outlines an "Additional Fee" that is added to the initial franchise fee if the territory population exceeds 450,000 people. The initial franchise fee is $59,900 for a territory encompassing 350,000 to 450,000 people. For territories with a population greater than 450,000, Cool Binz charges an additional $0.20 for each person exceeding that threshold.
For example, if a territory has a population of 500,000, the calculation for the initial franchise fee would be $59,900 plus (50,000 multiplied by $0.20), resulting in a total initial franchise fee of $69,900. This additional fee is intended to offset the expenses Cool Binz incurs in registering, marketing, awarding, training, and opening new franchises.
It is important to note that the determination of population size is solely for the purpose of calculating the initial franchise fee and does not represent any guarantee regarding the potential number of customers within the territory, either at the start or during the term of the franchise agreement. This fee structure applies to all territories, including those in Washington.