When is the Cool Binz royalty drafted from the franchisee's bank account each month?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
We will draft the Royalty from your bank account on the tenth (10th) day of the calendar month (or another day we may designate) for the preceding month. You must pay the Royalty by electronic funds transfer or by such other means as we may specify. We may periodically specify other dates for payment of the Royalty.
Source: Item 6 — OTHER FEES (FDD pages 19–27)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the monthly royalty fee will be drafted from the franchisee's bank account on the 10th day of each calendar month for the preceding month's sales. However, Cool Binz retains the right to designate an alternative day for this draft.
The royalty is calculated based on a percentage of gross sales. Franchisees pay the greater of $1,000 or 9% of gross sales until gross sales exceed $500,000 within a calendar year. Once this threshold is surpassed, the royalty decreases to 8% for the remainder of that year and the entire following calendar year. If gross sales fall below $500,000 in the subsequent year, the royalty reverts to 9%.
It is important for prospective Cool Binz franchisees to be aware of these royalty payment terms and to ensure they have sufficient funds available in their designated bank account to cover the royalty fees on the specified date each month. Franchisees must also deposit all sales proceeds into one bank account within three days of receipt. Furthermore, franchisees must sign an authorization form to debit their account automatically for all fees due to Cool Binz.