What is the standard initial franchise fee for a Cool Binz franchise?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
em.
ITEM 5: INITIAL FEES
Initial Fees for Franchises
Initial Franchise Fee
Upon signing of the Franchise Agreement, you must pay an initial franchise fee of $59,900 (the "Initial Franchise Fee"). The Initial Franchise Fee is deemed fully earned upon payment and non-refundable under any circumstances. The Initial Franchise Fee purchases a Territory that will encompass approximately 350,000 to 450,000 people to a maximum of 500,000 people ("Territory").
For a Territory with populations greater than 450,000 people, the Initial Franchise Fee will equal the Initial Franchise Fee above, plus $0.20 for each person over 450,000 (the "Additional Fee").
For example, the Initial Franchise Fee for a Territory with a population of 500,000 will be computed as follows:
$$$59,900 + (50,000 \times .20) = $69,900$$
As the Territories are generally defined by ZIP codes, we reserve the right not to charge the Additional Fee if we are unable to meet the 350,000 population count without exceeding due to highly populated areas. Each Territory will have a maximum of 500,000 people. The purchase of more than 500,000 in population in the aggregate at any time during the term of the Agreement will require the payment of an additional Initial Franchise Fee.
The Initial Franchise Fee offsets the expenses we incur in registering, marketing, awarding, training, and opening new franchises, and is non-refundable.
Initial Equipment Package
Upon signing of the Franchise Agreement, you must also pay a fee ranging from $579,995 to $979,000 ("Initial Equipment Fee") to us for the initial purchase of the truck, bins, mule, and other equipment needed for the operation of the COOL BINZ Business (the "Initial Package"). The Initial Equipment Fee varies based upon the number of containers you elect to purchase to service your Territory and the industry prices at the time you purchase your COOL BINZ Business. The Initial Equipment Fee is deemed fully earned upon payment and non-refundable under any circumstances and does not include shipping charges for delivery to your location. A full list of equipment being purchased in the Initial Package and the Initial Equipment Fee will be confirmed at least seven (7) days prior to execution of the Franchise Agreement.
Container Assembly and Set-Up Fee
Prior to opening your COOL BINZ Business, you must also pay a fee of $5,000 for two days of initial assembly and set-up of the Equipment needed for the operation of the COOL BINZ Business (the "Container Assembly and Set-Up Fee"). The Container Assembly and Set-Up Fee is deemed fully earned upon payment and non-refundable under any circumstances.
Source: Item 5 — INITIAL FEES (FDD pages 17–19)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the initial franchise fee is $59,900. This fee grants the franchisee a territory encompassing approximately 350,000 to 450,000 people, up to a maximum of 500,000. However, if the territory's population exceeds 450,000, an additional fee of $0.20 per person over that limit is applied. For example, a territory with 500,000 people would incur an initial franchise fee of $69,900, calculated as $59,900 plus (50,000 x $0.20). The purchase of more than 500,000 in population in the aggregate at any time during the term of the Agreement will require the payment of an additional Initial Franchise Fee.
The initial franchise fee covers Cool Binz's expenses related to registering, marketing, awarding, training, and opening new franchises. It is deemed fully earned upon payment and is non-refundable under any circumstances. This is a fairly standard practice in franchising, as the franchisor incurs significant upfront costs to establish a new franchisee.
Cool Binz also offers discounts on the initial franchise fee under certain conditions. Veterans of the U.S. Armed Forces may receive a 20% discount, while first responders may be eligible for a $2,500 discount. Additionally, franchisees purchasing multiple territories at the same time may receive reduced initial franchise fees for the second and third territories ($49,900 and $39,900, respectively). These discounts cannot be combined, providing potential cost savings for eligible franchisees or those looking to expand quickly. A related franchisee may qualify to purchase a COOL BINZ Business with a discounted Initial Franchise Fee. The initial fees for a Related Franchisee will be twenty-five percent (25%) off of the then-current Initial Franchise Fee, and such discounted fee is limited to up to two (2) Franchises, which must be purchased at the same time. A Related Franchisee cannot use any other discounts.
It is important to note that the initial franchise fee is just one component of the total investment required to start a Cool Binz franchise. Additional fees, such as the Initial Equipment Fee ($579,995 to $979,000), Container Assembly and Set-Up Fee ($5,000), and Initial Promotional Package Fee ($7,500), must also be considered. Prospective franchisees should carefully review all the fees and expenses outlined in Item 7 of the FDD to fully understand the financial commitment involved.