Who pays for the Cool Binz franchisee's participation in local marketing programs?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
of your business.
You must also spend a minimum of 10% of Gross Sales annually on local advertising until your fleet of Portable Equipment containers is at least 80% rented and then, at that point, you are required to spend at least 5% of Gross Sales annual on local advertising. You must use our approved advertising and marketing materials, or receive our written approval of any and all other advertising and marketing materials before their first use. All advertising and marketing materials must meet our then-current standards and specifications. We may, in our sole discretion, offer and sell advertising, marketing, and promotional materials at any time. Certain items, such as your truck, must reference the COOL BINZ national toll free number. You may not alter or remove reference to the national toll free number. You have no obligation to purchase any of these materials or forms from us, but you may be required to purchase such materials from approved or designated suppliers, or participate in our local marketing programs, like our call center and/or direct mail solicitations at your expense. (Section 2.G of the Franchise Agreement).
We do not currently require you to participate in an advertising cooperative, however we reserve the right to implement cooperatives in the future, and require you to participate. The area
of the cooperative and membership will be determined on a regional basis depending on where our future franchisees operate. Since we do not currently have active cooperatives, we cannot state affirmatively how much franchisees will contribute, however, we, along with franchisees that are members of the cooperative will determine the amount contributed and each will contribute equally or on a pro-rata basis, as determined by the cooperative. Company Stores are not required to contribute, but may do so. We will administer the cooperatives and the cooperatives will operate from written governing documents that will be available for review to franchisees. If two or more COOL BINZ Businesses and/or Company Stores are serviced by the same telephone directory, we will require you to list all businesses under one COOL BINZ heading. Should this instance arise, you must pay your pro-rata share of the total expense of the joint listing. Any other forms of advertising that would also advertise to zip-codes both inside and outside of the Territory must be pre-approved by COOL BINZ in writing. We will notify you within ten days of our receipt of your written request.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, franchisees are responsible for funding their local marketing efforts, with some initial support and ongoing requirements. Cool Binz requires franchisees to spend a minimum percentage of their gross sales on local advertising. Specifically, a franchisee must spend at least 10% of gross sales annually on local advertising until their fleet of portable equipment containers is 80% rented. After that, the required spending decreases to at least 5% of gross sales annually. Franchisees must use Cool Binz's approved advertising and marketing materials or obtain written approval for any other materials they intend to use.
Cool Binz provides some initial marketing support through a mandatory KickStart marketing program, which is included in the Initial Promotional Package. This program provides approximately $5,000 in digital marketing to promote the opening of the franchisee's business. However, beyond this initial support, the franchisee bears the ongoing responsibility for local advertising expenses.
Cool Binz also has established a Brand Marketing Fund, to which franchisees must contribute two percent (2%) of their gross sales monthly. While the Brand Marketing Fund is used for national, regional, and local advertising, the franchisee is still responsible for their local advertising expenses as described above. Cool Binz may also require franchisees to participate in local marketing programs, such as call centers or direct mail solicitations, at the franchisee's expense.