What items does Cool Binz offer financing for regarding initial fees and packages?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
Initial Fee
We may offer you financing for a portion of the Initial Franchise Fee, Initial Equipment Package, and the Initial Promotional Package if you meet our qualifications. We do not offer financing for the purchase of the truck. The following table summarizes the financing we may offer you.
| Source of Financing | Us | |-----------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Amount Financed | Up to 50% | | Down Payment | Minimum of 50% | | Term (number of years) | Up to 36 months | | Rate of Interest plus | 9% | | Finance Charge | | | Monthly Payment | Varies depending on amount financed and term. | | Prepayment Penalty | None | | Security Required | Personal Guaranty | | Guaranty | Personal Guaranty | | Liability upon Default | Termination or other loss of Franchise; you must also pay entire amount due and our attorneys' fees and court costs in collecting debt | | Loss of Legal Rights Upon Default | You must waive presentation for payment, demand, notice of non-payment, protest, and all other demands and notices required by law (statutory or 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.
Source: Item 10 — FINANCING (FDD pages 35–36)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, financing is available for a portion of the Initial Franchise Fee, the Initial Equipment Package, and the Initial Promotional Package. Cool Binz does not offer financing for the purchase of the truck.
To qualify for financing from Cool Binz, prospective franchisees must meet their credit standards and make a down payment of at least 50% of the total amount being financed. The financing is structured through a promissory note with a 9% interest rate and no finance charges. The interest rate will not be adjusted after the Franchise Agreement is signed. Late payments incur a fee of 5% or $50 per week, whichever is greater.
The term of the promissory note can extend up to 36 months, as agreed upon between Cool Binz and the franchisee, and the note can be prepaid without penalty. Security for the note requires a personal guaranty from the franchisee and all owners, including their spouses, of the franchisee entity. Failure to make payments can result in Cool Binz demanding immediate payment of the full outstanding balance and potentially terminating the Franchise Agreement, though a ten-day notice to cure the default is provided before termination. The promissory note survives any termination of the Franchise Agreement.
Cool Binz does not guarantee any notes, leases, or obligations other than the financing arrangement described. While Cool Binz currently has no practice or intent to sell, assign, or discount franchisees' financing arrangements to a third party, they reserve the right to do so in the future. Similarly, Cool Binz does not currently receive any payments for the placement of financing but reserves the right to do so in the future.