What should a Cool Binz franchisee independently investigate regarding earnings claims?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
The earnings claim figures may not reflect the full costs of sales, operating expenses, or other costs or expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit. You should conduct an independent investigation of the costs and expenses you will incur in operating your franchise business. Franchisees or former franchisees, listed in the offering circular, may be one source of this information.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, prospective franchisees should conduct an independent investigation into the costs and expenses they will incur while operating their franchise business. The FDD states that the earnings claim figures provided by Cool Binz may not reflect the full costs of sales, operating expenses, or other costs that must be deducted from gross revenue to determine net income or profit. This means that the initial figures presented by Cool Binz might not give a complete picture of potential profitability.
To gain a clearer understanding of potential earnings, Cool Binz suggests that franchisees or former franchisees, listed in the offering circular, may be one source of information. Speaking with current and former franchisees can provide valuable insights into the actual costs and expenses involved in running a Cool Binz franchise. This direct feedback can help potential franchisees develop a more realistic financial forecast.
It is important for prospective Cool Binz franchisees to not rely solely on the franchisor's earnings claims. By conducting their own thorough investigation, including consulting with existing franchisees and analyzing all potential costs, franchisees can make a more informed decision about whether to invest in a Cool Binz franchise.