Can the late report fee for a Cool Binz franchise increase?
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 can increase. The initial late report fee is $50 per day for each day a report is late. Cool Binz can increase this fee by up to 10% each year of the franchise term.
This means that a Cool Binz franchisee could face escalating penalties for submitting late reports. While the initial fee is relatively modest, the potential for annual increases of up to 10% could result in a significant financial burden over time if late reporting becomes a recurring issue. The fee is due by automatic debit the Friday (or any day Cool Binz designates) after the report is late.
Franchisees should ensure they have systems in place to submit reports on time to avoid these fees. It's also important to factor in the potential for these increases when projecting operating costs over the long term. This is a fairly standard practice in franchising, where franchisors often reserve the right to adjust fees to account for inflation or changing business conditions.