What period does the Cool Binz initial investment estimate cover?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
Notes
Our estimate of your initial investment to develop one COOL BINZ Business is described in the table above. The estimate covers the period before the opening of your franchise and includes a category for additional expenses you may incur during the initial three-month phase after the opening of your franchise. The estimate does not include an owner's salary or draw. The estimate also does not include cash requirements to cover operating losses or owner's draw after the initial three-month phase of the franchise. You may need additional funds available, whether in cash or through unsecured credit lines or have other assets that you may liquidate, or that you
may borrow against, to cover your personal living expenses and any operating losses after the initial phase of your franchise. The estimates below also do not reflect an amount for investment in real estate, since it is assumed that you will lease your premises.
We will finance up to fifty percent (50%) of the Initial Franchise Fee, Initial Equipment Package (excluding the trucks), and the Initial Promotional Package if you meet our qualifications at a nine percent (9%) interest rate and for a period of up to thirty-six (36) months. We require at least fifty percent (50%) down payment of the stated fees. The estimated loan payment will vary based upon how much you choose to finance and the length of the repayment schedule. See Item 10 for additional details.
In general, none of the expenses listed in the above charts are refundable, except security or utility deposits may be refundable.
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- See Item 5 for an explanation of the amount and refundability of the Initial Franchise Fee.
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Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 27–31)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the initial investment estimate covers the period before the franchise opens and includes additional expenses incurred during the first three months after opening. This estimate does not include the owner's salary or draw, nor does it cover operating losses or the owner's draw after this initial three-month period.
The FDD specifies that franchisees may need additional funds to cover personal living expenses and operating losses beyond the initial phase. The estimate also assumes that franchisees will lease their premises, and therefore does not include real estate investment costs.
Specifically, the table outlining the estimated initial investment includes a line item for "Additional Funds - 3 Months," with a range of $25,000 to $35,000. This is intended to cover expenses such as payroll (if applicable), additional supplies, utility deposits, and other miscellaneous costs during the startup phase. Rent for the post-opening period is listed separately.
Prospective Cool Binz franchisees should carefully consider these factors and ensure they have sufficient capital to cover not only the initial investment but also ongoing operating expenses and personal living costs, especially during the early stages of the business.