How is the repurchase price for Cool Binz storage containers calculated?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
c. CBI will repurchase the storage containers bins (the "Bins") in accordance with the table below. The percentages shown assume reasonable wear and tear and regular maintenance. If any components of the original Bins are missing, or there is damage or excessive wear and tear, CBI reserves the right to make a corresponding adjustment to the repurchase price. The original Bins pricing under its Schedule will be reduced to the applicable percentage in effect based on the time elapsed after original purchase.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, Cool Binz may repurchase the storage containers (referred to as "Bins") from a franchisee. The repurchase price is determined based on a percentage of the original purchase price, which is in effect based on the time elapsed after the original purchase. This percentage is subject to adjustments based on the condition of the bins.
The FDD specifies that the percentages used to calculate the repurchase price assume reasonable wear and tear and regular maintenance of the bins. If any components of the original bins are missing, or if there is damage or excessive wear and tear, Cool Binz reserves the right to adjust the repurchase price accordingly.
This means that a Cool Binz franchisee can expect to receive a lower repurchase price if the storage containers are not well-maintained or if parts are missing. It is important for franchisees to maintain their equipment to maximize the potential repurchase value. The specific percentages used for calculating the repurchase price based on the age of the bins are not detailed in this excerpt, so a prospective franchisee should inquire about the complete repurchase schedule to fully understand the potential return on their equipment investment upon termination or non-renewal of the franchise agreement.