What specific section of the Cool Binz Franchise Agreement is amended regarding national accounts?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
We may provide services to national and/or regional accounts that require centralized overview and support, and for purposes of responding to requests and referrals for Services through our franchise system, managing those relationships, answering calls placed to our toll-free number or a national account on-line access system. In that case, we may charge you a National or Regional Accounts Fee ("NORA Fee") of up to five percent (5%) of Gross Sales generated by the account. The purpose of this fee is to defray the cost of providing national/regional account management services to the franchise system. We do not plan to charge a fee for simple referrals where we do not directly manage the relationship with the customer, but we reserve the right to do so.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, there is no specific section of the Franchise Agreement amended regarding national accounts. However, the document does mention national accounts and a related fee. Cool Binz may provide services to national or regional accounts requiring centralized support. In such cases, Cool Binz may charge a National or Regional Accounts Fee (NORA Fee) of up to 5% of the gross sales generated by the account. This fee is intended to cover the costs of providing national/regional account management services to the franchise system. Cool Binz does not plan to charge a fee for simple referrals where they do not directly manage the relationship with the customer, but they reserve the right to do so.
This means that as a Cool Binz franchisee, you might have to pay a NORA Fee if you service national or regional accounts that require additional support from the franchisor. The fee could be up to 5% of the gross sales from that account, which could impact your profitability. However, this fee is intended to cover the cost of the additional support provided by Cool Binz.
It's important to note that Cool Binz reserves the right to charge a fee even for simple referrals, although they do not currently plan to do so. As a prospective franchisee, you should clarify with Cool Binz under what specific circumstances a NORA fee would be charged, especially for referrals, to fully understand the potential costs associated with servicing national and regional accounts.