Under what circumstances is the initial franchise fee for a Cool Binz franchise refundable?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
ge-73-0">2. FEES AND OTHER MONETARY REQUIREMENTS.
A. 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:
$$$59,900 + (50,000 \times .20) = $69,900$$
The Initial Franchise Fee offsets the expenses we incur in re
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 non-refundable under any circumstances. The FDD states that upon signing the Franchise Agreement, the initial franchise fee, which is $59,900 for a territory encompassing approximately 350,000 to 450,000 people (up to a maximum of 500,000), is deemed fully earned upon payment and is non-refundable. If the territory exceeds 450,000 people, an additional fee of $0.20 for each person over that limit is added to the initial franchise fee. For example, a territory with 500,000 people would have an initial franchise fee of $69,900. This fee offsets Cool Binz's expenses related to registering, marketing, awarding, training, and opening new franchises.
In addition to the initial franchise fee, Cool Binz franchisees must also pay other non-refundable fees. These include the Initial Equipment Fee, ranging from $579,995 to $979,000, for the initial purchase of the truck, bins, mule, and other equipment. There is also a Container Assembly and Set-Up Fee of $5,000 for the initial assembly and set-up of the equipment. Furthermore, franchisees must obtain an Initial Promotional Package for $7,500, which includes logo wear, stationery, the Kickstart digital marketing program, consumables, promotional items, and a $799 convention allowance.
Prospective Cool Binz franchisees should be aware that these initial fees are non-refundable, regardless of whether they ultimately open their franchise or not. This is a common practice in franchising, as the franchisor incurs costs from the moment the agreement is signed. Franchisees should carefully consider their financial situation and business plan before committing to a Cool Binz franchise, as they will not be able to recover these initial investments if they change their mind or are unable to proceed with the business. It is important to review the Franchise Agreement thoroughly and seek professional advice before making any financial commitments.