Is the initial franchise fee for a Cool Binz franchise refundable?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
Fee*
Upon signing of the Franchise Agreement, you must pay an initial franchise fee of $59,900 (the "Initial Franchise Fee"). The Initial Franchise Fee is deemed fully earned upon payment and non-refundable under any circumstances. The Initial Franchise Fee purchases a Territory that will encompass approximately 350,000 to 450,000 people to a maximum of 500,000 people ("Territory").
For a Territory with populations greater than 450,000 people, the Initial Franchise Fee will equal the Initial Franchise Fee above, plus $0.20 for each person over 450,000 (the "Additional Fee").
For example, the Initial Franchise Fee for a Territory with a population of 500,000 will be computed as follows:
$$$59,900 + (50,000 \times .20) = $69,900$$
As the Territories are generally defined by ZIP codes, we reserve the right not to charge the Additional Fee if we are unable to meet the 350,000 population count without exceeding due to highly populated areas. Each Territory will have a maximum of 500,000 people. The purchase of more than 500,000 in population in the aggregate at any time during the term of the Agreement will require the payment of an additional Initial Franchise Fee.
The Initial Franchise Fee offsets the expenses we incur in registering, marketing, awarding, training, and opening new franchises, and is non-refund
Source: Item 5 — INITIAL FEES (FDD pages 17–19)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the initial franchise fee is not refundable. The initial franchise fee is $59,900, but can increase depending on the population of the territory. For territories with a population greater than 450,000 people, Cool Binz charges an additional $0.20 for each person exceeding that limit. For example, a territory with 500,000 people would have an initial franchise fee of $69,900. Cool Binz states that the initial franchise fee offsets the expenses they incur when registering, marketing, awarding, training, and opening new franchises.
Cool Binz offers discounts on the initial franchise fee under certain conditions. Veterans of the U.S. Armed Forces may receive a 20% discount on their first franchise. First responders, including police officers, firefighters, EMTs, and paramedics, may be eligible for a $2,500 discount on their first franchise. If a franchisee purchases multiple territories at the same time, Cool Binz will reduce the initial franchise fee for the second territory to $49,900 and the initial franchise fee for the third territory to $39,900.
In the event of a franchise transfer, Cool Binz currently waives the initial franchise fee. However, the buyer or seller must pay the then-current transfer fee, and the buyer may be required to purchase some or all of the initial equipment package at their discretion. Upon renewal of the franchise agreement, franchisees are not required to pay the initial franchise fee or initial package fee, but they must pay the then-current renewal term fee and may be required to purchase new or additional equipment.