Do all Cool Binz franchisees contribute to the Brand Marketing Fund at the same rate?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
All franchisees will contribute to the Brand Marketing Fund at the same rate.
We will prepare on an annual basis, within 120 days of the end of the fiscal year, and make available to you upon written request, a statement of contributions and expenditures for the Brand Marketing Fund. The Brand Marketing Fund does not have to be independently audited. If the Brand Marketing Fees collected are not all spent in the fiscal year they are collected, we will carry over such funds to the following year to be spent on the Brand Marketing Fund initiatives in the following year.
There are currently no requirements for participation in an advertising council or any local or regional advertising cooperatives and, accordingly, you are not required to participate in one. However, we reserve the right to establish an advertising council or advertising cooperatives in the future and require your participation.
In the fiscal year ended December 31, 2024, we did not collect or spend any Brand Marketing Fund contributions.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 36–45)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, all franchisees contribute to the Brand Marketing Fund at the same rate. Franchisees are required to contribute two percent (2%) of their Gross Sales monthly to the Brand Marketing Fund. This contribution is referred to as the "Brand Marketing Fee" and must be paid on a monthly basis as outlined in Section 2.G of the Franchise Agreement.
The Brand Marketing Fund is used at Cool Binz's discretion to develop, produce, and distribute advertising on national, regional, and local levels. These funds also facilitate the creation of advertising materials and public relations programs aimed at promoting the services offered by Cool Binz franchisees. Cool Binz retains the sole right to determine how the contributions are spent, as well as the selection of advertising materials and programs. However, Cool Binz is expected to make a good faith effort to expend these fees in the best interests of the Cool Binz system on a national or regional basis.
It is important to note that Cool Binz and its affiliate-owned outlets are not required to contribute to the Brand Marketing Fund. While Cool Binz may advance money to the fund, they will determine the manner and timing for repayment of these advanced funds. Cool Binz will also prepare an annual statement of contributions and expenditures for the Brand Marketing Fund, available to franchisees upon written request within 120 days of the fiscal year's end. In the fiscal year ended December 31, 2024, Cool Binz did not collect or spend any Brand Marketing Fund contributions.