If a Cool Binz franchisee asks Cool Binz to evaluate alternative suppliers, when is the approval of alternative suppliers fee due?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
FEES**
| Name of Fee (Note 1) | Amount | Due Date | Remarks (Note 1) |
|---|---|---|---|
| Indemnification | Actual costs, will vary under circumstances | As incurred | You must reimburse us if we are held liable for claims directly or indirectly arising out of your COOL BINZ Business’s operation. |
Source: Item 6 — OTHER FEES (FDD pages 19–27)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the approval of alternative suppliers fee is due as incurred. This means that if a Cool Binz franchisee requests that Cool Binz evaluate alternative suppliers for required purchases, the franchisee must reimburse Cool Binz for the actual costs incurred during the evaluation process.
It is important to note that the franchisee is responsible for reimbursing Cool Binz for these costs regardless of whether Cool Binz ultimately approves the request to use the alternative supplier. This implies that even if the evaluation leads to a rejection of the proposed supplier, the franchisee is still liable for the evaluation expenses.
This fee covers Cool Binz's expenses for assessing whether the alternative supplier meets their standards and requirements. Franchisees should carefully consider the potential costs before requesting an evaluation, as these costs can vary and are not capped. It would be prudent for a prospective franchisee to discuss with Cool Binz what typical costs for such an evaluation might be, to better understand the financial implications.