What advertising restrictions apply to other Cool Binz franchisees within a franchisee's territory?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
obs and service customers in your Territory without restriction or limitation. No other COOL BINZ franchisee or Company Store may advertise in print, media, door-to-door, mass electronic communication, or direct web-based advertising within your Territory. Should you not be in full compliance with this Agreement, we reserve the right to allow other compliant COOL BINZ franchisee or Affiliate to perform work in your Territory. Additionally, you may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
The term of the franchise will be ten (10) years (the "Initial Term") commencing on the date of this Agreement.
You must at all times faithfully, honestly, and diligently perform your obligations under this Agreement. Except as stated herein, you must designate at least one managing owner (the "Managing Owner") who will be our primary individual contact with the COOL BINZ Business and who we will approve in our sole discretion.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, while franchisees are granted a territory, there are specific advertising restrictions that apply to other franchisees and company-owned stores within that territory. Other Cool Binz franchisees or company stores are generally prohibited from advertising in print, media, door-to-door, mass electronic communication, or direct web-based advertising within a franchisee's territory.
However, this restriction is not absolute. Other Cool Binz franchisees and company stores can accept jobs and service customers within another franchisee's territory without any limitations. Additionally, these restrictions can be lifted if a franchisee is not in full compliance with the Franchise Agreement, in which case Cool Binz reserves the right to allow other compliant franchisees or affiliates to perform work and advertise within that territory.
Furthermore, Cool Binz retains the right to establish and allow other franchisees to establish Cool Binz businesses outside of a franchisee's territory, subject to the same marketing restrictions when servicing in the franchisee's territory. It is important to note that these advertising restrictions are subject to exceptions outlined in Sections 1.D and 2.F of the Franchise Agreement, which franchisees should review carefully to fully understand the scope of these limitations and their rights within their designated territory.