How does operating more than one territory affect the Cool Binz franchisee's insurance costs?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
You must procure, maintain and provide from our approved vendors, liability and other insurance policies for your trucks and your COOL BINZ Business as described in the Franchise Agreement.
These costs will increase if you operate more than one Territory or if you choose to accept and perform National Account work.
See Item 8 of this Disclosure Document for more information regarding our insurance requirements.
Your truck lease may require higher limits or additional coverages.
Each specified policy of insurance must meet the following requirements: (a) the policy must name us, BELFOR USA Group, Inc., and BELFOR Franchise Group, LLC (and any of our affiliates that we reasonably specify) as an additional insured; (b) the policy must not be subject to cancellation, modification or amendment except after 30 days written notice to us; (c) the insurance must be placed with an approved vendor and an insurance carrier with an AM Best's Rating of not less than A; and (d) the policy must provide that failure by you to comply with any term, condition or provision of the insurance contract, or other conduct by you, will not void or otherwise affect the coverage afforded us.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 27–31)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, operating more than one territory will increase a franchisee's insurance costs. The FDD states that franchisees must procure and maintain liability and other insurance policies for their trucks and Cool Binz business. These costs are expected to rise if the franchisee operates in multiple territories or chooses to engage in National Account work.
Item 8 of the FDD provides further details regarding Cool Binz's insurance requirements. The franchisee's truck lease may also stipulate higher insurance limits or additional coverages. Each insurance policy must meet specific criteria, including naming Cool Binz and its affiliates as additional insured parties and providing 30 days' written notice for any policy cancellations or amendments.
The insurance must be placed with an approved vendor and an insurance carrier with an AM Best's Rating of not less than A. Additionally, the policy must ensure that any failure by the franchisee to comply with the insurance contract will not affect the coverage afforded to Cool Binz. Therefore, prospective franchisees should carefully consider the increased insurance costs associated with operating multiple territories when evaluating the financial implications of expanding their Cool Binz business.