How much can the Cool Binz Late Report Fee increase each year?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee (Note 1) | Amount | Due Date | Remarks (Note 1) |
|---|---|---|---|
| Late Report Fee | $50 per day that a report is late. This fee may increase up to ten percent (10%) each year of the term. | Due by automatic debit the Friday (or any day we designate) after the report is late | Due for each day a report is late. We may increase this fee by up to 10% each year of the Term. |
Source: Item 6 — OTHER FEES (FDD pages 19–27)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the Late Report Fee is $50 per day for each day a report is late. Cool Binz has the right to increase this fee by up to 10% each year of the franchise term. This fee is due by automatic debit on the Friday (or any day Cool Binz designates) after the report is late.
For a prospective Cool Binz franchisee, this means that failing to submit reports on time can result in a daily fee, which can increase annually. It is important to note that the 10% increase is not mandatory, but permissible, at Cool Binz's discretion. Franchisees should prioritize timely report submissions to avoid incurring these fees and should factor in potential increases when budgeting.
Many franchise systems have late fee policies, but the specific amounts and increase allowances can vary. Some may have fixed late fees, while others may tie the fee to a percentage of outstanding amounts. The fact that Cool Binz can increase the fee annually by up to 10% means that the cost of late reporting could grow substantially over the term of the franchise agreement. Franchisees should clarify with Cool Binz how often these increases are implemented and under what circumstances.