Is Cool Binz obligated to advance money to the Brand Marketing Fund?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
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We and our affiliate-owned outlets are not required to contribute to the Brand Marketing Fund. We may, but are not obligated to, advance money to the Brand Marketing Fund to fund Brand Marketing Fund programs. In the event that we advance monies to the Brand Marketing Fund, we will determine, in our sole discretion, the manner and timing for the repayment, to us, of some, or all, of the funds we advance. All franchisees will contribute to the Brand Marketing Fund at the same rate.
We will prepare on an annual basis, within 120 days of the end of the fiscal year, and make available to you upon written request, a statement of contributions and expenditures for the Brand Marketing Fund. The Brand Marketing Fund does not have to be independently audited.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 36–45)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, Cool Binz is not required to advance money to the Brand Marketing Fund. However, Cool Binz has the option to advance money to the fund to support its programs. If Cool Binz does advance funds, it has the sole discretion to determine the manner and timing for the repayment of some or all of the advanced funds.
This means that as a Cool Binz franchisee, you cannot rely on Cool Binz to provide upfront funding for marketing initiatives. Instead, franchisees are required to contribute to the Brand Marketing Fund, with the franchisor deciding how those funds are spent. The FDD states that all franchisees will contribute to the Brand Marketing Fund at the same rate.
In the fiscal year ending December 31, 2024, Cool Binz did not collect or spend any Brand Marketing Fund contributions. This indicates that the fund may be in its early stages or that Cool Binz has not yet actively utilized it. Prospective franchisees should inquire about the franchisor's plans for the Brand Marketing Fund and how it will benefit their business.