Does the Cool Binz initial investment estimate include an owner's salary or draw?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
Our estimate of your initial investment to develop one COOL BINZ Business is described in the table above. The estimate covers the period before the opening of your franchise and includes a category for additional expenses you may incur during the initial three-month phase after the opening of your franchise. The estimate does not include an owner's salary or draw. The estimate also does not include cash requirements to cover operating losses or owner's draw after the initial three-month phase of the franchise. You may need additional funds available, whether in cash or through unsecured credit lines or have other assets that you may liquidate, or that you
may borrow against, to cover your personal living expenses and any operating losses after the initial phase of your franchise. The estimates below also do not reflect an amount for investment in real estate, since it is assumed that you will lease your premises.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 27–31)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the estimated initial investment does not include an owner's salary or draw. The FDD clarifies that the estimate covers the period before the franchise opens and includes potential additional expenses during the first three months after opening. However, it specifically excludes any salary or draw for the owner during this period.
This means that prospective Cool Binz franchisees need to have sufficient funds to cover their personal living expenses during the start-up phase, in addition to the initial investment costs outlined in Item 7. The FDD also notes that the estimate does not include cash to cover operating losses or owner's draw after the initial three-month period. Therefore, franchisees should anticipate the need for additional capital to sustain themselves and the business beyond the initial months.
Cool Binz recommends that franchisees have additional funds available, either in cash, unsecured credit lines, or other liquid assets, to cover personal living expenses and potential operating losses after the initial three-month phase. This is a common practice in franchising, as many new businesses take time to become profitable, and owners often need to support themselves financially during the early stages. Franchisees should carefully consider their financial situation and ensure they have adequate resources to cover these expenses to avoid financial strain during the initial period of operation.