Does the Cool Binz initial investment estimate reflect an amount for investment in real estate?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
Notes
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 initial investment estimate does not include an amount for real estate if a franchisee chooses to lease their premises. The FDD states that the estimates provided assume the franchisee will lease, rather than purchase, the location. However, if a franchisee chooses to purchase real estate, the initial investment will be much greater, but the FDD does not provide an estimate for those costs.
The Cool Binz FDD outlines the requirements for the facility, including a minimum of one-half to one acre paved or hard surface lot with access to electric and water, a minimum office space of 500 square feet (or a COOL BINZ office bin), a COOL BINZ storage pod for supplies, signage, a 24-hour security system, and fencing. The estimate includes costs for these items, contractor and sub-contractor expenses, and an architect, if the franchisee chooses to engage one. The cost for leasehold improvements ranges from $0 to $20,000, depending on the condition of the location selected.
The document specifies that franchisees must operate their Cool Binz business from an industrial park or commercial space. The estimated average monthly rent for an industrial park space ranges from $2,500 to $7,500, and landlords typically require a security deposit of one or two months' rent. The annual rent amount may vary significantly depending on factors such as the area of the country, condition, location, size, and demand.
Prospective Cool Binz franchisees should consider whether they intend to lease or purchase their business premises, as this decision will significantly impact the initial investment required. If considering purchasing real estate, it is important to contact Cool Binz for further information, as the FDD does not include estimates for real estate purchase and construction costs.