What is the interest rate charged by Cool Binz for financing?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
r otherwise) | If you would like to finance a portion of the Initial Franchise Fee, Initial Package, and the Initial Promotional Package, and you meet our credit standards, you may do so through a promissory note (the "Note"), which is currently attached as Exhibit A-5 to the Franchise Agreement. You must make a down payment of at least fifty percent (50%) of the total fee you are financing. We currently charge an interest rate of 9%, and no finance charges. We will not adjust APR of the Note once your Franchise Agreement has been signed. A late fee of 5% or $50, per week, whichever sum is greater, will be collected if you fail to make timely payments or your payments are returned to us with non-sufficient funds. The only security we require is a personal guaranty of the Note by you and by all the owners, as well as all respective spouses, of the Franchisee entity.
The term of the Note will be up to 36 months, as agreed between you and us. You may prepay the Note without penalty at any time during its term. If you fail to make any payment, we can call the Note and demand immediate payment of the full outstanding balance. The Note requires you to waive notice of non-payment, protest, and all other demands and notices that may be required by law. We can also terminate your Franchise Agreement if you fail to make payments
as agreed; however, before your Franchise Agreement can be terminated, you will receive a notice of default and have a ten-day period to cure the default. The Note shall survive termination of the Franchise Agreement. It is not our current practice or intent to sell, assign, or discount to a third party all or part of the financi
Source: Item 10 — FINANCING (FDD pages 35–36)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, Cool Binz offers financing for a portion of the Initial Franchise Fee, Initial Equipment Package, and the Initial Promotional Package to qualified franchisees. Cool Binz does not, however, offer financing for the purchase of the truck.
The interest rate charged by Cool Binz is 9%. There are no finance charges. This rate will not be adjusted after the Franchise Agreement is signed. The term of the promissory note can be up to 36 months. Franchisees can prepay the note without incurring any penalties.
If a franchisee fails to make timely payments, a late fee of 5% or $50 per week, whichever is greater, will be applied. The financing requires a personal guaranty from the franchisee and their spouse. Failure to make payments can result in Cool Binz demanding immediate payment of the full outstanding balance and potentially terminating the Franchise Agreement, though the franchisee will receive a ten-day notice to cure the default before termination. The promissory note survives the termination of the Franchise Agreement.