factual

If Cool Binz provides advertising materials, is a franchisee obligated to use them?

Cool_Binz Franchise · 2025 FDD

Answer from 2025 FDD Document

ocal 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 Cool Binz's 2025 Franchise Disclosure Document, franchisees are required to use Cool Binz's approved advertising and marketing materials. Franchisees can also use their own advertising and marketing materials, but they must receive written approval from Cool Binz before their first use. To obtain approval, franchisees must submit the proposed advertising material to Cool Binz for review at least ten business days before the proposed first use. If Cool Binz takes no action within the ten business day period, the materials are deemed disapproved and cannot be used. Cool Binz has the right to designate approved suppliers for all advertising and marketing materials.

Cool Binz also retains the right to require franchisees to immediately discontinue the use of any advertising or marketing materials at any time, even if previously approved or provided by them. All advertising and marketing materials must meet Cool Binz's current standards and specifications. Certain items, such as the franchisee's truck, yard signs, and furnace stickers, must reference the Cool Binz national toll-free number, which cannot be altered or removed.

While franchisees are not obligated to purchase advertising materials from Cool Binz, they may be required to purchase such materials from approved or designated suppliers or participate in Cool Binz's local marketing programs, such as their call center and/or direct mail solicitations, at their own expense. This ensures that all advertising aligns with the brand's standards and promotes a consistent image. Franchisees must also spend a minimum of 10% of Gross Sales annually on local advertising until their fleet of Portable Equipment containers are at least 80% rented. After that point, they are required to spend at least 5% of Gross Sales annually on local advertising.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.