According to Cool Binz's 2025 Franchise Disclosure Document, the total gross notes receivable as of December 31, 2022, was $5,519. These notes receivable consist of amounts due from the sale of franchises and area franchise rights, refinanced obligations due in monthly payments with imputed interest ranging from 4.0% to 12.0%, and amounts due from the sale of equipment to franchisees, also due in monthly payments with imputed interest between 8.5% and 10.5%. These receivables are collateralized by the franchise, equipment, and personal guarantees.

It's important to note that this figure represents the total gross amount before accounting for any potential credit losses or the current portion due within the year. The allowance for credit losses, which estimates the amount of receivables that may not be collected, was $1,112 as of the same date. The current portion, representing the amount due within one year, was $1,972.

For a prospective Cool Binz franchisee, understanding the nature and collectability of these notes receivable is crucial. It provides insight into the financial health of Cool Binz and its reliance on financing arrangements with franchisees. Reviewing the historical trends in notes receivable and the allowance for credit losses can offer a more comprehensive view of the company's financial stability and risk management practices.