If Cool Binz implements advertising cooperatives in the future, will franchisees be required to participate?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
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. Any other forms of advertising that would also advertise to zip-codes both inside and outside of the Territory must be pre-approved by COOL BINZ in writing. We will notify you within ten days of our receipt of your written request. If we do not respond within ten days, the material is unapproved. Additionally, if we implement local marketing programs, like a call center and/or direct mail solicitations, you may be required to participate, at your expense.
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, Cool Binz does not currently require franchisees to participate in an advertising cooperative. However, Cool Binz reserves the right to implement these cooperatives in the future and require franchisee participation.
The FDD states that the area of the cooperative and membership will be determined regionally, based on where future franchisees operate. The amount franchisees will contribute will be determined by Cool Binz and the franchisee members of the cooperative, contributing either equally or on a pro-rata basis. Company stores are not required to contribute but may choose to do so. Cool Binz will administer the cooperatives, and written governing documents will be available for franchisee review.
In addition to potential advertising cooperatives, Cool Binz may implement local marketing programs like call centers or direct mail solicitations, which franchisees may be required to participate in at their own expense. Franchisees are also obligated to spend a minimum percentage of gross sales on local advertising: 10% until their fleet of portable equipment containers is 80% rented, and then 5% thereafter. This local advertising must use Cool Binz's approved materials or receive written approval for any other materials used.