What is the minimum monthly royalty payment for a Cool Binz franchise?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
F.
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- You will pay the Royalty based on a percentage of your Gross Sales. Beginning the 13th month of operation, you will be required to pay at least the minimum monthly payment of $1,000, if that sum is higher than the percentage Royalty, and you must generate minimum monthly gross sales as stated below in the below chart. There is no minimum level of Gross Sales or
minimum monthly payment required for the first 12 months. For the following months, the minimum Gross Sales will be:
| Month in Operation | Min. Monthly Gross Sales Requirement |
|---|---|
| 0-12 | none |
| 13-24 | $9,750 |
| 25-36 | $10,500 |
| 37-48 | $12,600 |
| 48> | $15,375 |
You must deposit all
Source: Item 6 — OTHER FEES (FDD pages 19–27)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, franchisees are required to pay a monthly royalty fee. For the first 12 months of operation, there is no minimum royalty payment required. However, beginning in the 13th month, Cool Binz franchisees must pay a minimum monthly royalty of $1,000 if that amount is higher than the percentage of gross sales royalty.
The royalty is calculated as the greater of $1,000 or 9% of gross sales until gross sales exceed $500,000 in a calendar year. If a franchisee's gross sales exceed $500,000 in a calendar year, the royalty decreases to 8% for the remainder of that year and the entire following calendar year. If the franchisee fails to exceed $500,000 in gross sales in the subsequent year, the royalty reverts to 9%.
Cool Binz will draft the royalty payment from the franchisee's bank account on the 10th day of each month (or another designated day) for the preceding month's sales. Franchisees must authorize Cool Binz to debit their account automatically for all fees due. This royalty structure incentivizes franchisees to increase their sales, as exceeding the $500,000 threshold results in a lower royalty percentage for a period of time.