What population range does the initial Cool Binz franchise fee cover?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
Fee*
Upon signing of the Franchise Agreement, you must pay an initial franchise fee of $59,900 (the "Initial Franchise Fee"). The Initial Franchise Fee is deemed fully earned upon payment and non-refundable under any circumstances. The Initial Franchise Fee purchases a Territory that will encompass approximately 350,000 to 450,000 people to a maximum of 500,000 people ("Territory").
For a Territory with populations greater than 450,000 people, the Initial Franchise Fee will equal the Initial Franchise Fee above, plus $0.20 for each person over 450,000 (the "Additional Fee").
For example, the Initial Franchise Fee for a Territory with a population of 500,000 will be computed as follows:
$$$59,900 + (50,000 \times .20) = $69,900$$
As the Territories are generally defined by ZIP codes, we reserve the right not to charge the Additional Fee if we are unable to meet the 350,000 population count without exceeding due to highly populated areas. Each Territory will have a maximum of 500,000 people. The purchase of more than 500,000 in population in the aggregate at any time during the term of the Agreement will require the payment of an additional Initial Franchise
Source: Item 5 — INITIAL FEES (FDD pages 17–19)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the initial franchise fee of $59,900 grants a franchisee a territory encompassing approximately 350,000 to 450,000 people, up to a maximum of 500,000. For territories exceeding 450,000 people, Cool Binz charges an additional fee of $0.20 for each person over that limit.
For example, a territory with a population of 500,000 would incur an initial franchise fee of $69,900, calculated as $59,900 plus an additional $10,000 (50,000 people over 450,000 multiplied by $0.20). Cool Binz retains the right not to charge the additional fee if they cannot meet the 350,000 population count without exceeding the limit due to highly populated areas, as territories are generally defined by ZIP codes.
The purchase of more than 500,000 in population in the aggregate at any time during the term of the Agreement will require the payment of an additional Initial Franchise Fee. This means that franchisees need to carefully consider the population of their territory when signing the Franchise Agreement to avoid unexpected additional fees.