How is the Renewal Term Fee calculated for a Cool Binz franchise?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee (Note 1) | Amount | Due Date | Remarks (Note 1) |
|---|---|---|---|
| Renewal Term Fee | Our then-current fee, which is presently, 10% of the then-current Initial Franchise Fee | At the time you sign a Franchise Agreement for a renewal term | You will sign our then current Franchise Agreement for the renewal term, which may include materially different terms, including the Royalty rate and/or Territory. We may increase this fee by up to 10% each year of the Term. |
Source: Item 6 — OTHER FEES (FDD pages 19–27)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the Renewal Term Fee is calculated as 10% of the then-current Initial Franchise Fee at the time the franchisee signs a Franchise Agreement for a renewal term. This means the exact amount of the fee will depend on what Cool Binz charges new franchisees at the time of renewal.
Cool Binz also specifies that the franchisee will be required to sign the then-current Franchise Agreement for the renewal term, which may include significantly different terms than the original agreement. These changes could include adjustments to the royalty rate or the designated territory.
Furthermore, Cool Binz retains the right to increase the Renewal Term Fee by up to 10% each year of the current term. This detail introduces an element of uncertainty, as the renewal fee could be substantially higher by the time the renewal option becomes available. Prospective franchisees should consider these potential increases when evaluating the long-term costs and benefits of investing in a Cool Binz franchise.