What late fee does Cool Binz charge for late or non-sufficient fund payments?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
s 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, if a franchisee fails to make timely payments on their promissory note, or if their payments are returned due to non-sufficient funds, Cool Binz will charge a late fee. This late fee is calculated as 5% of the payment amount or $50 per week, whichever is greater.
This policy has significant implications for franchisees who choose to finance a portion of their initial fees through Cool Binz. Missing a payment or having a payment rejected could result in a substantial late fee, potentially adding to the financial burden of the franchise. The fact that the fee is the greater of 5% or $50 means that even small late payments will incur a $50 charge, which could be quite high relative to the payment amount.
Furthermore, failure to make payments as agreed can lead to Cool Binz calling the note and demanding immediate payment of the full outstanding balance, as well as potential termination of the Franchise Agreement, although the franchisee will receive a ten-day notice to cure the default before termination. The promissory note also requires the franchisee to waive certain legal rights, such as notice of non-payment. Therefore, prospective franchisees should carefully consider their ability to meet the payment schedule before financing through Cool Binz and be aware of the penalties for late or non-sufficient fund payments.