What activities are prohibited under the Cool Binz non-compete agreement?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
ARTICLE III NON-COMPETITION
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- During the Term of the Franchise Agreement. During the term of this Franchise Agreement, you shall not:
- a. Engage as an owner, partner, shareholder, director, officer, employee, consultant, agent, or in any other capacity in any other business offering leasing of portable storage containers, devices and equipment, including, climate-controlled and nonclimate-controlled storage containers, mobile offices, mobile refrigeration units and/or freezers or other services that are the same as or similar to the services sold by the COOL BINZ Business (except for other franchises or authorizations we enter into with you;
- b. Use our Confidential Information, System, COOL BINZ owners' intranet website, Operations Manual, Marks, Customer lists, Customer Information, trade secrets, trade dress, proprietary knowledge, or know-how, or any colorable imitations, in the design, development, or operation of any business other than the COOL BINZ Business franchised hereunder, unless specifically authorized by us; or
- c. Divert or attempt to divert any business or customer of the COOL BINZ Business to any competitor, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated the Marks or the System.
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- After the Term of the Franchise Agreement. For a period of 18 months from the time of expiration or termination of this Agreement, you and your owners and, if applicable, your Designated General Manager, shall not: (a) engage as an owner, shareholder, partner, director, officer, employee, consultant, salesperson, representative, or agent or in any other capacity in any business offering leasing of portable storage containers, devices and equipment, including, climate-controlled and non-climate-controlled storage containers, mobile offices, mobile refrigeration units and/or freezers, (b) solicit business from Customers
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, during the term of the franchise agreement, franchisees are restricted from certain activities to protect the Cool Binz system. Specifically, franchisees cannot engage in any business that offers leasing of portable storage containers, devices, and equipment, including climate-controlled and non-climate-controlled storage containers, mobile offices, mobile refrigeration units, or freezers, or any services similar to those sold by Cool Binz. This restriction does not apply to other franchises or authorizations granted by Cool Binz itself.
Additionally, franchisees are prohibited from using Cool Binz's confidential information, system, intranet website, operations manual, trademarks, customer lists, customer information, trade secrets, trade dress, proprietary knowledge, or know-how, or any imitations thereof, in the design, development, or operation of any business other than the franchised Cool Binz business, unless specifically authorized by Cool Binz.
Furthermore, franchisees are barred from diverting or attempting to divert any business or customer of Cool Binz to a competitor, whether through direct or indirect inducement, or from performing any act that is injurious or prejudicial to the goodwill associated with the Cool Binz trademarks or system. These restrictions also extend beyond the term of the franchise agreement for a period of 18 months, during which former franchisees and their owners cannot engage in a similar business or solicit Cool Binz customers.