When does the minimum monthly royalty payment requirement begin for a Cool Binz franchise?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
ibit 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.
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 not required to meet a minimum monthly royalty payment for the first 12 months of operation. However, beginning in the 13th month, a minimum monthly payment of $1,000 is required if that amount is higher than the royalty percentage of gross sales.
Specifically, Cool Binz franchisees must pay a monthly royalty equal to the greater of $1,000 or 9% of their gross sales. This rate applies until gross sales exceed $500,000 in a calendar year, at which point the royalty decreases to 8% for the remainder of that year and the entire following year. If the franchisee fails to exceed $500,000 in gross sales in the subsequent calendar year, the royalty rate reverts to 9%.
In addition to the minimum monthly royalty payment, Cool Binz also sets minimum monthly gross sales requirements starting in the 13th month of operation. From months 13-24, the minimum gross sales requirement is $9,750. This increases to $10,500 for months 25-36, $12,600 for months 37-48, and $15,375 for months 48 and beyond. This escalating scale of minimums means franchisees must progressively increase their sales volume to maintain compliance with the franchise agreement.