What security is required by Cool Binz for its financing?

According to Cool Binz's 2025 Franchise Disclosure Document, the only security Cool Binz requires for its financing is a personal guaranty of the promissory note by the franchisee, all owners of the franchisee entity, and their respective spouses. This means that if Cool Binz provides financing for the Initial Franchise Fee, Initial Package, and Initial Promotional Package, the franchisee and their spouse will be personally responsible for repaying the loan if the business fails. This is a fairly standard practice in franchising, as it gives the franchisor additional assurance that the loan will be repaid.

Cool Binz may offer financing for a portion of the Initial Franchise Fee, Initial Equipment Package, and the Initial Promotional Package if the franchisee meets their qualifications. However, Cool Binz does not offer financing for the purchase of the truck. The amount financed can be up to 50%, with a minimum down payment of 50%. The term of the note can be up to 36 months, with an interest rate of 9%. There are no prepayment penalties.

If a franchisee defaults on the loan, Cool Binz can terminate the franchise agreement, but the franchisee will receive a notice of default and have a ten-day period to cure the default. The note survives termination of the Franchise Agreement. In addition to termination, the franchisee must pay the entire amount due, including Cool Binz's attorneys' fees and court costs in collecting the debt. The franchisee must also waive presentation for payment, demand, notice of non-payment, protest, and all other demands and notices required by law.