Is there a financial limit on the Cool Binz franchisee's obligation to renovate, refurbish, or remodel?
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. |
| Renovation, Refurbishing, and Remodeling Fees | Actual Costs | When incurred | We may require you to replace, renew, refurbish, or remodel your leased premises, truck, truck wrap, and equipment to meet our current System Standards and condition requirements at any time during the Term, in our sole discretion, and at your expense. You must maintain all trucks in good working condition at all times. There are no financial limits on this obligation |
Source: Item 6 — OTHER FEES (FDD pages 19–27)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, there is no financial limit on a franchisee's obligation to renovate, refurbish, or remodel their business. Cool Binz, at its sole discretion, can require franchisees to replace, renew, refurbish, or remodel their leased premises, truck, truck wrap, and equipment to meet the company's current System Standards and condition requirements at any time during the term of the agreement. These costs are the responsibility of the franchisee. Franchisees must also maintain all trucks in good working condition at all times.
This lack of a financial limit could pose a significant financial risk to Cool Binz franchisees. Unexpected or extensive remodeling requirements could place a substantial financial burden on the franchisee, potentially impacting their profitability or even leading to financial distress. The franchisee has no control over when or how extensive these renovations might be, making financial planning difficult.
In the franchise industry, it is not uncommon for franchisors to require periodic updates or renovations to maintain brand standards and consistency across all locations. However, some franchise agreements may include financial limits or caps on these renovation costs, or provide a schedule outlining when such renovations are likely to occur, allowing franchisees to better prepare financially. The Cool Binz franchise agreement does not appear to offer such protections.
Prospective Cool Binz franchisees should carefully consider this open-ended financial obligation and factor it into their financial projections. It would be prudent to discuss with Cool Binz the typical scope and frequency of required renovations, as well as any potential financing options or support the company might offer to help franchisees manage these costs.