How is the renewal term fee determined 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 based on the then-current initial franchise fee. Specifically, the renewal fee is 10% of the initial franchise fee at the time of renewal. The FDD also states that Cool Binz may increase this fee by up to 10% each year of the term.
This means that the cost to renew your Cool Binz franchise will depend on what the initial franchise fee is at the time your current agreement expires and you are seeking a renewal. It is important to note that the renewal agreement you sign may contain materially different terms than your original agreement, including changes to the royalty rate and/or territory.
As a prospective franchisee, it would be prudent to inquire about the historical trends of the initial franchise fee and any anticipated changes. Understanding how Cool Binz has adjusted this fee in the past can provide insight into potential future costs associated with renewing your franchise agreement. Also, franchisees should carefully review the terms of the renewal agreement when it is presented to understand any changes to the royalty rate, territory, or other key provisions.