What is the Cool Binz franchisee's obligation regarding reporting receipt of payments?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
ve not already done so by the effective date of termination.
D. DEFINITION OF GROSS SALES.
You must report your Gross Sales each month. "Gross Sales," as used in this Agreement, includes all revenue generated from operating the COOL BINZ Business, whether in cash, in services in kind, from barter and/or exchange, or otherwise. All barter and/or exchange transactions for which you furnish Services and/or products in exchange for goods or services will, for the purpose of determining Gross Sales, be valued at the full retail value of the goods and/or services you provide. You may deduct from Gross Sales the amount of all sales tax receipts or similar tax receipts that, by law, are chargeable to customers, if these taxes are separately stated when the Customer is charged. In accordance with our policies as published periodically, you may also deduct from Gross Sales the amount of any documented refunds that we consider appropriate. You must pay Royalties only on the receipt of the cash, services in kind, barter and/or other exchange. All payments received for jobs must be recorded in the COOL BINZ Software or other software program within the Required Software that we designate within 48 hours of being received.
E. LATE REPORT FEE, LATE PAYMENT SERVICE FEE AND INTEREST.
If the Royalty or any other fee that is due is not available in your account for debiting when due, a late payment fee will be imposed of $50, whichever sum is greater, for each day past due ("Late Payment Fee"). If you do not report your Gross Sales as required and/or you fail to submit your Royalty reports when due, a fee will be imposed of $50 per week for each week past due ("Late Report Fee"). Additionally, interest will be imposed at the rate of 18% per annum or the
maximum rate permitted by applicable law, whichever is greater, from the date these amounts were originally due until the date paid ("Interest Fee"). If we debit your account for monies owed and there are insufficient funds available, we will also charge our current non-sufficient fund fee ("NSF Fee").
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, franchisees are required to record all payments received for jobs in the COOL BINZ Software or other designated software within 48 hours of receipt. This requirement ensures accurate tracking of Gross Sales, which is defined as all revenue generated from operating the Cool Binz business, including cash, services in kind, or barter/exchange transactions. Barter and exchange transactions are valued at the full retail value of the goods or services provided.
Cool Binz franchisees must report their Gross Sales each month and pay royalties on the receipt of cash, services in kind, or other exchanges. Failure to record customer payments in the COOL BINZ Software within the specified timeframe can lead to inspections or audits by Cool Binz.
If Cool Binz conducts an inspection or audit due to the franchisee's failure to furnish reports, supporting records, or other information as required, or discovers an understatement of Royalty greater than 3% for any period reviewed, the franchisee must reimburse Cool Binz for the cost of the inspection and/or audit. This includes charges for attorneys, independent accountants, travel, room and board expenses, and compensation for Cool Binz employees. Additionally, if the understatement of Royalty exceeds 3%, the franchisee must pay an additional penalty fee equal to 10% of the total amount of the understated Gross Sales. These measures ensure compliance and accurate reporting of financial information by Cool Binz franchisees.