Under what conditions can Cool Binz require a franchisee 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 Cool Binz's 2025 Franchise Disclosure Document, Cool Binz has the authority to mandate renovations, refurbishments, or remodeling of a franchisee's business premises, truck, truck wrap, and equipment. This can be required at any point during the term of the franchise agreement. These changes must align with Cool Binz's current System Standards and condition requirements.
The franchisee is responsible for covering the full costs associated with these renovations, refurbishments, or remodels. The FDD explicitly states that there are no financial limits placed on this obligation, meaning the franchisee could face significant and unpredictable expenses to comply with Cool Binz's requirements.
This level of control is relatively common in franchising, as franchisors seek to maintain brand consistency and quality standards across all locations. However, the lack of financial limits on these required updates presents a potential financial risk for Cool Binz franchisees. Prospective franchisees should carefully consider this open-ended obligation and factor it into their financial planning. It would be prudent to discuss with Cool Binz what typical renovation costs have been for existing franchisees and how frequently such renovations are mandated.