What is the minimum amount required for Insurance Deposits and Premiums before opening a Cool Binz franchise?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
ESTMENT
| Type of Expenditure | Low | High | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|---|
| Initial Franchise | $59,900 | $59,900 | Lump | At Signing of Franchise Agreement | Us |
| Fee 1 | Sum | ||||
| Truck, Equipment, and Initial Containers 2 | $579,995 |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 27–31)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the estimated initial investment for insurance deposits and premiums ranges from $10,200 to $17,850. This payment is required before opening the franchise and is to be paid to the insurance company. The timing of the payment is as required by the insurance provider, but at minimum, it is annually.
Cool Binz requires franchisees to procure and maintain liability and other insurance policies for their trucks and business from approved vendors. These costs may increase if the franchisee operates more than one territory or accepts National Account work. The insurance policies must name Cool Binz, BELFOR USA Group, Inc., and BELFOR Franchise Group, LLC as additional insureds and cannot be canceled or modified without 30 days' written notice to Cool Binz. The insurance carrier must have an AM Best's Rating of not less than A, and the policy must ensure that any failure by the franchisee does not affect the coverage afforded to Cool Binz.
Prospective franchisees should carefully review Item 8 of the FDD for more detailed information regarding Cool Binz's specific insurance requirements. Additionally, franchisees should confirm with Cool Binz which insurance vendors are approved to ensure compliance with the franchise agreement. Understanding these insurance obligations is crucial for managing the initial investment and ongoing operational costs of a Cool Binz franchise.