How is Item 6 of the Cool Binz FDD amended for Washington franchisees regarding fee increases?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
t executed in connection with the franchise.
ADDITIONAL DISCLOSURES FOR THE STATE OF WASHINGTON
- In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW will prevail.
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- RCW 19.100.180 may supersede the Franchise Agreement in your relationship with the Franchisor including the areas of termination and renewal of your franchise. There may also be court decisions which may supersede the Franchise Agreement in your relationship with the Franchisor including the areas of termination and renewal of your franchise.
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- Item 6 of the FDD shall be amended to state: "The Technology Fee, Software Fee, Transfer Fee, Broker Fee
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to the 2025 Cool Binz FDD, Item 6 is amended for Washington franchisees to address potential fee increases during the franchise agreement term. Specifically, the Technology Fee, Software Fee, Transfer Fee, Broker Fee – Resale, Renewal Term Fee, Late Report Fee, Late Payment Fee, Administrative Fee, Collection Fee, Management Fee, Non-Sufficient Funds (NSF) Fee, Convention Non-Attendance Fee, and Non-Compliance Fee may increase during the term of the Franchise Agreement.
The formula for increasing these fees is based on the actual cost of the product or service to Cool Binz, plus up to 10% of the fee at the time of the franchise agreement's execution, for each year of the term. For example, if a fee is $500.00 at the time of execution, the increase in year 2 could be up to the actual cost to Cool Binz, plus $100.00.
This amendment clarifies how Cool Binz may adjust certain fees, providing transparency to prospective franchisees in Washington. It is important for franchisees to understand that while some fees are subject to change, the increase is capped at the actual cost to the franchisor plus 10% of the initial fee. Franchisees should factor in potential fee increases when assessing the overall cost and profitability of the Cool Binz franchise.