When does a Cool Binz franchisee begin paying the minimum monthly royalty payment of $1,000?

According to Cool Binz's 2025 Franchise Disclosure Document, a franchisee is not required to meet a minimum gross sales level or pay a minimum monthly royalty for the first 12 months of operation. However, beginning in the 13th month of operation, a Cool Binz franchisee is required to pay at least a minimum monthly royalty payment of $1,000 if that sum is higher than the percentage royalty owed.

Specifically, Cool Binz calculates the monthly royalty as the greater of $1,000 or 9% of gross sales until gross sales exceed $500,000 in a calendar year. If a franchisee's gross sales exceed $500,000 in a calendar year, the royalty decreases to 8% for the remainder of that calendar year and the entire following calendar year. If the franchisee fails to exceed $500,000 in gross sales the following calendar year, the royalty reverts to 9%.

This royalty structure means that a Cool Binz franchisee must achieve a certain level of sales to avoid paying the minimum royalty. For example, if a franchisee's gross sales in a month are less than $11,111.11, they will pay the $1,000 minimum because 9% of $11,111.11 is approximately $1,000. This minimum royalty payment ensures that Cool Binz receives a baseline income from each franchise location, regardless of its sales performance. The franchisee must also generate minimum monthly gross sales as stated in the chart. For months 13-24, the minimum gross sales requirement is $9,750.