When is the late report fee due for a Cool Binz franchise?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee (Note 1) | Amount | Due Date | Remarks (Note 1) |
|---|---|---|---|
| Late Report Fee | $50 per day that a report is late. This fee may increase up to ten percent (10%) each year of the term. | Due by automatic debit the Friday (or any day we designate) after the report is late | Due for each day a report is late. We may increase this fee by up to 10% each year of the Term. |
Source: Item 6 — OTHER FEES (FDD pages 19–27)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the late report fee is due by automatic debit the Friday (or any day Cool Binz designates) after the report is late. The fee is $50 per day that a report is late.
This means that if a Cool Binz franchisee submits a required report even one day after the deadline, they will be charged $50. This fee is automatically debited from their account, so franchisees need to ensure they have sufficient funds to cover it. Cool Binz also retains the right to change the day of the automatic debit.
Cool Binz also states that it may increase this fee by up to 10% each year of the term. This means the initial $50 late fee could increase over time, potentially adding up to a significant expense if reports are consistently submitted late. Franchisees should be aware of this potential increase and factor it into their operational budget.
It is common practice for franchisors to charge late fees for overdue reports, as timely reporting is crucial for monitoring the franchise's performance and calculating royalties. However, the specific amount and terms of these fees can vary. Prospective Cool Binz franchisees should carefully consider the implications of this late fee policy and ensure they have systems in place to submit reports on time.