What is the range for 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 total includes various expenses that a franchisee will incur before opening their Cool Binz business. These expenses include the initial franchise fee, the cost of the truck, equipment, and initial containers, container assembly and set-up fees, transportation costs, computer equipment and software, rent, leasehold improvements, insurance deposits and premiums, pre-opening travel expenses to training, professional fees, business permits and licenses, office and small equipment supplies, the initial promotional package, grand opening advertising, and additional funds for the first three months of operation.
The initial franchise fee is a flat $59,900. The cost for the Truck, Equipment, and Initial Containers ranges from $579,995 to $979,000. Transportation costs can range from $35,000 to $100,000. Rent can range from $0 to $22,500, while leasehold improvements can range from $0 to $20,000. Insurance deposits and premiums range from $10,200 to $17,850. Pre-opening travel expenses for training are estimated between $1,000 and $3,000. The cost of computer equipment and software is between $3,000 and $5,000. The container assembly and set-up fee is a flat $5,000. The initial promotional package is a flat $7,500. Grand opening advertising is estimated between $5,000 and $7,500. Professional fees range from $2,250 to $5,750. Business permits and licenses range from $250 to $1,000. Office and small equipment supplies range from $750 to $1,500. Additional funds for the first three months of operation are estimated to be between $25,000 and $35,000.
It is important to note that these costs do not include an owner's salary or draw, nor do they include cash requirements to cover operating losses or owner's draw after the initial three-month phase. The estimate also does not include an amount for investment in real estate, assuming the franchisee will lease their premises. The franchisee may need additional funds to cover personal living expenses and any operating losses after the initial phase. The range in the initial investment accounts for differences in the number of containers ordered and industry prices at the time of purchase. The low range accounts for the minimum container requirement per territory.