Under what condition can Cool Binz require a franchisee to have audited financial statements prepared annually?

According to Cool Binz's 2025 Franchise Disclosure Document, Cool Binz can require a franchisee to have audited financial statements prepared on an annual basis if the franchisee fails to comply with any provision of the Franchise Agreement. This means that any violation of the agreement, no matter how small, could trigger this requirement.

This is a significant point for prospective franchisees to consider. Audited financial statements can be quite expensive, potentially costing thousands of dollars annually. This cost would be in addition to the other financial reporting requirements Cool Binz imposes, such as monthly gross sales reports, income statements, and financial projections.

Franchisees should carefully review the Franchise Agreement to understand all of their obligations and ensure they can meet them to avoid the additional expense of annual audited financial statements. It would be prudent to discuss with Cool Binz what specific types of non-compliance would trigger this requirement to better understand the potential risk.