What is the purpose of the Cool Binz Brand Marketing Fund?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, we have established a brand marketing fund (the "Brand Marketing Fund") for the common benefit of System franchisees. You must contribute two percent (2%) of your Gross Sales monthly to the Brand Marketing Fund (the "Brand Marketing Fee") in the manner we prescribe.
We will use the Brand Marketing Fund, in our sole discretion, to develop, produce and distribute national, regional and/or local advertising and to create advertising materials and public relations programs, which promote, in our sole judgment, the services offered by COOL BINZ franchisees. We have the sole right to determine contributions and expenditures from the Brand Marketing Fund, or any other advertising program, and the sole authority to determine, without limitation, the selection of the advertising materials and programs; provided, however, that we will make a good faith effort to expend Brand Marketing Fund in the general best interests of the System on a national or regional basis. We may use the Brand Marketing Fund to satisfy any and all costs of maintaining, administering, directing, preparing, producing, and implementing advertising, including the cost of: (i) preparing, producing, and implementing television, radio, magazine and newspaper advertising campaigns, the cost of direct mail and outdoor billboard advertising; (ii) public relations activities and advertising agencies; (iii) developing and maintaining an Internet website; and personnel and other departmental costs for advertising that we internally administer or prepare. Nevertheless, we acknowledge that not all System franchisees will benefit directly or on a pro rata basis from such expenditures. While we do not anticipate that any part of the Brand Marketing Fund will be used for advertising which is principally a solicitation for franchisees, we reserve the right to use the Brand Marketing Fund for public relations or recognition of the "COOL BINZ" brand, for the creation and maintenance of a website, a portion of which can be used to explain the franchise offering and solicit potential franchisees, and to include a notation in any advertisement indicating "Franchises Available."
We may periodically assist COOL BINZ franchisees to maintain high quality standards through customer surveys, customer interviews, and other similar initiatives ("Surveys"). The cost of such programs will be borne by the Brand Marketing Fund. The cost of these programs may be
charged directly to you if the results from a Survey fall below System established minimum standards for such Surveys.
We have the right to reimburse ourselves from the Brand Marketing Fund for such reasonable costs and overhead, if any, that we may incur in activities reasonably related to the direction and implementation of the Brand Marketing Fund.
We 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.
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 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the Brand Marketing Fund exists for the common benefit of all Cool Binz franchisees. Franchisees are required to contribute 2% of their gross sales monthly to this fund, known as the Brand Marketing Fee. Cool Binz has sole discretion over the fund's use.
The primary purpose of the Brand Marketing Fund is to develop, produce, and distribute advertising and public relations programs that promote the services offered by Cool Binz franchisees. This includes national, regional, and local advertising efforts. The FDD specifies that the fund can cover costs related to television, radio, magazine, and newspaper campaigns, as well as direct mail, billboard advertising, public relations, advertising agencies, website development, and internal advertising personnel.
Cool Binz retains the right to determine how the Brand Marketing Fund is spent, aiming to act in the best interests of the overall Cool Binz system. While the fund is not intended primarily for franchisee recruitment, Cool Binz reserves the right to use it for brand recognition, website maintenance (including franchise opportunity information), and including franchise availability notices in advertisements. The Brand Marketing Fund may also cover the costs of customer surveys and similar initiatives to maintain quality standards, though franchisees may be directly charged if their survey results fall below minimum standards. Cool Binz may also reimburse itself for reasonable costs and overhead related to managing the Brand Marketing Fund. Cool Binz is not required to contribute to the fund but may advance money to it, determining the repayment terms at its discretion. Cool Binz will provide an annual statement of contributions and expenditures within 120 days of the fiscal year's end, but the fund does not have to be independently audited.