According to Cool Binz's 2025 Franchise Disclosure Document, the long-term portion of notes receivable as of December 31, 2024, was $793. These notes receivable stem from the sale of franchises or area franchise rights, equipment sales, or refinancing a franchise's obligations. These receivables are due in monthly payments with imputed interest ranging from 4.0% to 12.0% for franchise/area rights and 8.5% to 10.5% for equipment sales. These notes are collateralized by the franchise, equipment, and personal guarantees.

It is important to note that the total gross notes receivable for Cool Binz as of December 31, 2024, was $2,585. However, this amount is reduced by an allowance for credit losses of $1,214 and a current portion of $578, resulting in the reported long-term portion of $793. This allowance for credit losses represents the company's estimate of amounts that may not be collectible.

For a prospective Cool Binz franchisee, understanding the nature and collectability of these notes receivable is crucial. The franchisor's financial stability and ability to support franchisees depend, in part, on the successful collection of these receivables. Franchisees should inquire about the historical collection rates and the factors that influence the allowance for credit losses to assess the risk associated with these notes receivable.