Does Cool Binz require franchisees to maintain necessary amounts of working capital?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
F. REQUIREMENT TO MAINTAIN A MINIMUM LEVEL OF PORTABLE EQUIPMENT AND MINIMUM LEVEL OF GROSS SALES
You acknowledge and agree that we have awarded you this COOL BINZ Business and Territory with the expectation that you will be able to develop a COOL BINZ Business that will achieve a minimum level of Portable Equipment containers and a minimum level of Gross Sales ("Minimum Gross Sales Requirement"). The Business will be required to maintain the following minimum levels of Portable Equipment containers based on the number of Territories:
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
Based on the 2025 Cool Binz Franchise Disclosure Document, while there is no explicit requirement to maintain a specific amount of working capital, franchisees are required to meet certain minimum standards that imply a need for sufficient capital. Cool Binz mandates franchisees maintain a minimum level of portable equipment containers and achieve a minimum level of gross sales. These requirements suggest that franchisees must have enough capital to acquire and maintain the necessary equipment and support sales efforts.
Additionally, Cool Binz requires franchisees to operate and maintain their business according to System Standards, which may be modified and supplemented during the term of the agreement. These standards cover various aspects, including the use of supplies and equipment, vehicle maintenance, and compliance with applicable laws. Adhering to these standards could necessitate franchisees having adequate working capital to cover related expenses.
Furthermore, franchisees must purchase or lease and maintain the Computer System, COOL BINZ Software, and any Required Software, along with paying associated fees. They must also keep their Computer System in good repair and install any directed upgrades or modifications. These technology-related requirements also imply that franchisees need to have sufficient funds available for these ongoing costs. Therefore, while a specific working capital amount isn't stated, the operational requirements suggest franchisees need to ensure they have enough capital to meet these obligations.