What actions are Cool Binz franchisees prohibited from taking with respect to the 'COOL BINZ' name after termination or expiration of the Franchise Agreement?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
B. MARKS.
Upon the termination or expiration of this Agreement, you must:
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- strictly comply with, observe, and abide by all of the post-termination provisions of this Agreement, including those as set forth in Sections 5, 6 and 13.D of this Agreement;
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- neither directly nor indirectly represent to the public that any other business you may then own or operate, is or was operated as, or was in any way connected to, the System;
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- not hold yourself out or advertise in any context that you are a present franchisee or were a former franchisee of ours;
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- immediately cease operation under this Agreement and not operate or do business under any name or in any manner which might tend to give the general public the impression that you are operating a COOL BINZ Business, or any confusingly similar business;
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- take the action required to cancel all DBAs or equivalent registrations relating to your use of any Mark;
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- remove all signage from vehicles and store fronts and deliver to us, within five (5) days, the Operations Manual and all copies thereof, and all proprietary information, confidential material, Required Software (including the COOL BINZ Software), signs, sign-faces, marketing and advertising materials, forms, uniform patches, decals (or proof of their removal) and other materials containing any Mark or otherwise identifying or relating to a COOL BINZ Business, and allow us, without liability to you or third parties, to remove all of these items from your vehicles and place of business;
You shall permit us to make final inspection of your financial records, books, and other accounting records within eighteen (18) months of the effective date of termination, expiration, or transfer.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement, a franchisee faces several restrictions regarding the use of the Cool Binz name and system. Specifically, franchisees must comply with post-termination provisions outlined in Sections 5, 6, and 13.D of the agreement. They cannot directly or indirectly represent any other business as being connected to the Cool Binz system, nor can they advertise themselves as a current or former Cool Binz franchisee.
Furthermore, franchisees must cease operating under the agreement and avoid using any name or business manner that might mislead the public into thinking they are still operating a Cool Binz business or a confusingly similar one. They are required to cancel all 'doing business as' (DBA) registrations related to the use of any Cool Binz mark. Additionally, franchisees must remove all signage from vehicles and storefronts and return all materials containing any Cool Binz mark, including the operations manual, proprietary information, software, signs, and marketing materials.
In practical terms, these stipulations ensure that a former franchisee cannot capitalize on Cool Binz's brand recognition or trade secrets after the agreement ends. This protects Cool Binz's brand integrity and prevents customer confusion. Franchisees should be aware of these restrictions and plan accordingly to rebrand their business and avoid any potential legal issues after the franchise agreement concludes. Cool Binz also retains the right to inspect the franchisee's financial records within 18 months of termination or expiration.