What is the maximum term in years for Cool Binz financing?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
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 financing arrangement.
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 meets Cool Binz's credit standards, Cool Binz may offer financing for a portion of the Initial Franchise Fee, Initial Equipment Package, and the Initial Promotional Package through a promissory note.
The maximum term for the Cool Binz promissory note is up to 36 months, or 3 years, as agreed upon between the franchisee and Cool Binz. The franchisee must make a down payment of at least 50% of the total fee being financed. The interest rate is currently 9%, with no finance charges. Cool Binz will not adjust the APR of the note once the Franchise Agreement has been signed.
Cool Binz requires a personal guaranty of the note from the franchisee and all owners, including their spouses, of the franchisee entity. Franchisees can prepay the note at any time without penalty. However, failure to make payments can result in Cool Binz demanding immediate payment of the full outstanding balance and potentially terminating the Franchise Agreement after a ten-day notice of default to cure the default.