What is the range of the estimated initial investment for a Cool Binz franchise?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
ESTMENT
| Type of Expenditure | Low | High | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|---|
| Initial Franchise | $59,900 | $59,900 | Lump | At Signing of Franchise Agreement | Us |
| Fee 1 | Sum | ||||
| Truck, Equipment, and Initial Containers 2 | $579,995 | $979,000 | Lump Sum | Before Opening | Us |
| Container Assembly and Set-Up 3 | $5,000 | $5,000 | Lump Sum | Before Opening | Us |
| Transportation 4 | $35,000 | $100,000 | Lump Sum | Before Opening | Third-Party Providers |
| Computer Equipment and Software 5 | $3,000 | $5,000 | Lump Sum | Before Opening | Third-Party Providers |
| Rent 6 | $0 | $22,500 | As Incurred | Before Opening | Landlord |
| Leasehold | $0 | $20,000 | As incurred | Before | Third-Party Providers |
| Improvements 7 | Opening | ||||
| Insurance Deposits and Premiums8 | $10,200 | $17,850 | As required by the insurance provider; at minimum , annually | Before Opening | Insurance Company |
| --- | --- | --- | --- | --- | --- |
| Pre-Opening Travel Expense to Training9 | $1,000 | $3,000 | As Incurred | Before Opening | Third-Party Providers (Airline/Hotel/Restaurant ) |
| Professional Fees10 | $2,250 | $5,750 | As Arranged | Before Opening | Third-Party Providers (Attorneys / Accountants) |
| Business Permits | $250 | $1,000 | As | Before | Federal, State and Local |
| and Licenses | Incurred | Opening | Government Agencies | ||
| Office and Small Equipment Supplies | $750 | $1,500 | As Incurred | Before Opening | Third-Party Providers |
| Initial Promotional Package11 | $7,500 | $7,500 | As Incurred | Before Opening | Us |
| Grand Opening | $5,000 | $7,500 | As | Before | Third-Party Providers |
| Advertising | Incurred | Opening | |||
| Additional Funds | $25,000 | $35,000 | As | After | Employees, Suppliers, |
| - 3 Months12 | Incurred | Opening | etc. | ||
| TOTAL | $734,845 | $1,270,500 | |||
| ESTIMATED | |||||
| INITIAL | |||||
| INVESTMENT1 | |||||
| 2 |
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 estimated initial investment to begin a Cool Binz franchise ranges from $734,845 to $1,270,500. This substantial investment covers a variety of expenses, from the initial franchise fee and the purchase of the truck, equipment, and initial containers, to expenses such as transportation, computer equipment, software, rent, leasehold improvements, insurance, and initial promotional packages. It also includes an allocation for additional funds needed during the first three months of operation.
The initial franchise fee is a flat $59,900. The most significant expense is the "Truck, Equipment, and Initial Containers" which ranges from $579,995 to $979,000. Transportation costs can also vary widely, from $35,000 to $100,000. Rent is estimated between $0 and $22,500, while leasehold improvements could add another $0 to $20,000, depending on the condition of the premises. Insurance costs are estimated to be between $10,200 and $17,850.
Prospective franchisees should note that these figures do not include an owner's salary or draw, nor do they account for potential operating losses beyond the initial three-month phase. Cool Binz estimates additional funds of $25,000 to $35,000 are necessary for the first three months. The FDD specifies that Cool Binz will finance up to 50% of the Initial Franchise Fee, Initial Equipment Package (excluding the trucks), and the Initial Promotional Package at a 9% interest rate for up to 36 months, requiring at least a 50% down payment. This financing option could alleviate some of the initial financial burden.
It is important to consider that many of these initial investment costs are non-refundable. The document also highlights the necessity of operating from an industrial park or commercial space, with average monthly rents ranging from $2,500 to $7,500, potentially requiring a security deposit. The estimates provided are based on the experience of an affiliate-owned location during its start-up phase. The FDD advises that the franchisee may need additional funds to cover personal living expenses and operating losses after the initial phase.