Does a Cool Binz franchisee have an obligation to purchase advertising materials from Cool Binz?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
of your business.
You must also spend a minimum of 10% of Gross Sales annually on local advertising until your fleet of Portable Equipment containers is at least 80% rented and then, at that point, you are required to spend at least 5% of Gross Sales annual on local advertising. You must use our approved advertising and marketing materials, or receive our written approval of any and all other advertising and marketing materials before their first use. All advertising and marketing materials must meet our then-current standards and specifications. We may, in our sole discretion, offer and sell advertising, marketing, and promotional materials at any time. Certain items, such as your truck, must reference the COOL BINZ national toll free number. You may not alter or remove reference to the national toll free number. You have no obligation to purchase any of these materials or forms from us, but you may be required to purchase such materials from approved or designated suppliers, or participate in our local marketing programs, like our call center and/or direct mail solicitations at your expense. (Section 2.G of the Franchise Agreement).
We do not currently require you to participate in an advertising cooperative, however we reserve the right to implement cooperatives in the future, and require you to participate. The area
of the cooperative and membership will be determined on a regional basis depending on where our future franchisees operate. Since we do not currently have active cooperatives, we cannot state affirmatively how much franchisees will contribute, however, we, along with franchisees that are members of the cooperative will determine the amount contributed and each will contribute equally or on a pro-rata basis, as determined by the cooperative. Company Stores are not required to contribute, but may do so. We will administer the cooperatives and the cooperatives will operate from written governing documents that will be available for review to franchisees. If two or more COOL BINZ Businesses and/or Company Stores are serviced by the same telephone directory, we will require you to list all businesses under one COOL BINZ heading. Should this instance arise, you must pay your pro-rata share of the total expense of the joint listing.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, franchisees are not obligated to purchase advertising materials directly from Cool Binz. However, Cool Binz mandates participation in a KickStart marketing program, included in the Initial Promotional Package, which provides approximately $5,000 in digital marketing to promote the business opening.
Cool Binz requires franchisees to spend a minimum percentage of gross sales on local advertising. Specifically, franchisees must spend at least 10% of Gross Sales annually on local advertising until 80% of their Portable Equipment containers are rented. After that, the required spending decreases to at least 5% of Gross Sales annually. Franchisees must use Cool Binz's approved advertising and marketing materials or obtain written approval from Cool Binz for any alternative materials before use. Cool Binz retains the right to designate approved suppliers for all advertising and marketing materials.
While franchisees are not obligated to purchase advertising materials directly from Cool Binz, they may be required to purchase such materials from approved or designated suppliers or participate in local marketing programs, such as call centers or direct mail solicitations, at their own expense. Certain items, like the franchisee's truck, yard signs, and furnace stickers, must reference the COOL BINZ national toll-free number, which cannot be altered or removed. Cool Binz also has established a brand marketing fund where franchisees must contribute 2% of their gross sales monthly.