Are the initial franchise, renewal, and transfer fees for a Cool Binz franchise refundable?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
If this is a renewal term ("Renewal Term"), the Initial Franchise Fee is waived. However, you must pay the renewal fee, as set forth in Section 11.D of this Agreement. The renewal fee is non-refundable and deemed fully earned upon payment.
- a. our then-current Transfer Fee, as published in our Operations Manual. The Transfer Fee is due upon our preparation of the required transfer documentation (consent to transfer and assignment agreement and/or preparation of transferee's franchise agreement), and is non-refundable at such time;
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the initial franchise fee is generally non-refundable. Specifically, the FDD states that the initial franchise fee is deemed fully earned upon payment and is non-refundable under any circumstances. This fee compensates Cool Binz for expenses related to registering, marketing, awarding, training, and opening new franchises.
Regarding renewal fees, the FDD states that if the franchise agreement is for a renewal term, the initial franchise fee is waived. However, a renewal fee must be paid as detailed in Section 11.D of the agreement, and this renewal fee is also non-refundable and considered fully earned upon payment. Therefore, similar to the initial franchise fee, the renewal fee is also non-refundable.
As for transfer fees, the FDD indicates that a transfer fee is required when transferring the franchise. This fee is due upon Cool Binz's preparation of the necessary transfer documentation, such as the consent to transfer and assignment agreement or the preparation of the transferee's franchise agreement. The transfer fee is non-refundable once the documentation is prepared. Therefore, prospective Cool Binz franchisees should be aware that the initial franchise fee, the renewal fee, and the transfer fee are all non-refundable under the conditions specified in the FDD.