Can the terms of the Franchise Agreement change upon renewal for a Cool Binz franchise?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee (Note 1) | Amount | Due Date | Remarks (Note 1) |
|---|---|---|---|
| Indemnification | Actual costs, will vary under circumstances | As incurred | You must reimburse us if we are held liable for claims directly or indirectly arising out of your COOL BINZ Business’s operation. Your obligation to indemnify us will survive the termination or expiration of your Franchise Agreement. |
| Costs and | Actual costs, will vary | As incurred | See Note 7. |
| Attorneys’ Fees | under circumstances | ||
| NORA Fee | None currently assessed; if we manage accounts through a national or regional accounts program you will pay up to 5% of Gross Sales | As incurred | See Note 8, and Section 1F of Franchise Agreement |
| Approval of Alternative Suppliers | Actual costs | As incurred | If you ask us to evaluate alternative suppliers of required purchases, you must reimburse us regardless of whether subsequently approve your request. |
| Month in Operation | Min. Monthly Gross Sales Requirement | ||
| 0-12 | none | ||
| 13-24 | $9,750 | ||
| 25-36 | $10,500 | ||
| 37-48 | $12,600 | ||
| 48> | $15,375 | ||
| Name of Fee (Note | Amount | Due Date | Remarks |
| 1) | (Note 1) | ||
| Broker Fee - Resale | If you authorize us to enlist a third-party broker to locate the transferee, there will also be a broker fee, which currently is approximately 10% of the sale price, or $30,000, whichever is higher. | Due upon closing of the sale of the COOL BINZ Business | Payable only if the third party broker located the transferee. Payable to and imposed and collected by us if a broker fee was paid by us to the third party. Payable to and imposed and collected by the broker if we do not pay a broker fee to the third party. This fee is imposed by the third party broker and thus may be increased periodically by the broker. |
| Renewal Term Fee | Our then-current fee, which is presently, 10% of the then-current Initial Franchise Fee | At the time you sign a Franchise Agreement for a renewal term | You will sign our then current Franchise Agreement for the renewal term, which may include materially different terms, including the Royalty rate and/or Territory. We may increase this fee by up to 10% each year of the Term. |
Source: Item 6 — OTHER FEES (FDD pages 19–27)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the terms of the Franchise Agreement can change upon renewal. Specifically, when renewing the franchise agreement, franchisees will be required to sign the then-current Franchise Agreement, which, according to the FDD, may include materially different terms. These potential changes could include adjustments to the royalty rate and/or the territory assigned to the franchisee.
In addition to signing a new agreement with potentially different terms, Cool Binz also charges a renewal fee. This fee is the then-current fee, which is presently 10% of the then-current Initial Franchise Fee. The FDD also states that Cool Binz may increase this fee by up to 10% each year of the Term.
This means that when a Cool Binz franchisee renews their agreement, they may face different financial obligations or operational requirements than they did under their original agreement. The franchisor retains the right to modify key aspects of the franchise relationship, which could impact the franchisee's profitability and business strategy. Prospective franchisees should carefully consider this aspect and discuss potential renewal terms with the franchisor before investing in a Cool Binz franchise.