What is the minimum down payment required when financing through Cool Binz?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
r otherwise) | If you would like to finance a portion of the Initial Franchise Fee, Initial Package, and the Initial Promotional Package, and you meet our credit standards, you may do so through a promissory note (the "Note"), which is currently attached as Exhibit A-5 to the Franchise Agreement. You must make a down payment of at least fifty percent (50%) of the total fee you are financing. We currently charge an interest rate of 9%, and no finance charges. We will not adjust APR of the Note once your Franchise Agreement has been signed. A late fee of 5% or $50, per week, whichever sum is greater, will be collected if you fail to make timely payments or your payments are returned to us with non-sufficient funds. The only security we require is a personal guaranty of the Note by you and by all the owners, as well as all respective spouses, of the Franchisee entity.
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 t
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 seeks financing from Cool Binz for the Initial Franchise Fee, Initial Package, and Initial Promotional Package, they must make a minimum down payment. This down payment is set at fifty percent (50%) of the total amount being financed. Cool Binz does not offer financing for the purchase of the truck.
This requirement means that a prospective Cool Binz franchisee needs to have at least half of the required capital readily available to qualify for Cool Binz's financing program. For example, if the total cost of the Initial Franchise Fee, Initial Equipment Package, and Initial Promotional Package is $20,000, the franchisee would need to provide a down payment of $10,000 to finance the remaining $10,000 through Cool Binz.
It is important to note that Cool Binz's financing is subject to meeting their credit standards. The availability of financing and the specific terms are contingent upon the franchisee's creditworthiness. Franchisees should carefully consider their financial situation and ability to meet the down payment requirement before pursuing this financing option. Franchisees should also be aware that the only security Cool Binz requires is a personal guaranty of the Note by you and by all the owners, as well as all respective spouses, of the Franchisee entity.
While a 50% down payment might seem substantial, it is not uncommon in the franchise industry, especially for smaller or newer franchise systems. This requirement reduces the franchisor's risk and ensures that the franchisee has a significant stake in the success of the business. Franchisees should compare Cool Binz's financing terms with those offered by third-party lenders to determine the most favorable option for their individual circumstances.