In Virginia, when must a Cool Binz franchisee pay the initial franchise fee and other initial payments?

According to Cool Binz's 2025 Franchise Disclosure Document, franchisees in Virginia do not pay the initial franchise fee and other initial payments until Cool Binz has completed its pre-opening obligations under the franchise agreement. This requirement is mandated by the Virginia State Corporation Commission's Division of Securities and Retail Franchising. This amendment is specifically for the Commonwealth of Virginia and is in recognition of the restrictions contained in Section 13.1-564 of the Virginia Retail Franchising Act.

This means that a prospective Cool Binz franchisee in Virginia will not be required to pay the initial franchise fee of $59,900, or $69,900 for a territory with a population of 500,000, until Cool Binz has fulfilled its obligations to prepare the franchisee for opening. This protects the franchisee by ensuring that Cool Binz performs its initial duties, such as providing training and site selection assistance, before receiving payment.

This arrangement is more favorable for the franchisee compared to standard franchise agreements, where the initial franchise fee is typically paid upon signing the agreement and is non-refundable. The Virginia-specific addendum provides an added layer of security for franchisees operating in that state, ensuring that Cool Binz is committed to supporting the franchisee before receiving the initial investment.