Is Cool Binz approval of a purchaser as a new franchisee conditional on my agreement to a non-compete agreement?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
It is also agreed and understood that if you sell any one (1) or more of your COOL BINZ franchise businesses, as a condition precedent to our approving your purchaser as a new COOL BINZ franchisee, you will agree with your purchaser and with us not to compete for 18 months after the sale closing, in the leasing of portable storage containers business within a geographic area extending out from the purchased COOL BINZ territory boundaries, in every direction, for 50 miles. Provided, however, these non-competition provisions do not create or imply any additional restrictions upon your ownership of other COOL BINZ franchise business(es) in and around this geographic area.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, if you decide to sell your Cool Binz franchise, Cool Binz's approval of the purchaser as a new franchisee is conditional on your agreement to a non-compete agreement.
Specifically, as a condition of Cool Binz approving your purchaser as a new franchisee, you must agree with your purchaser and with Cool Binz not to compete for 18 months after the sale closing. This non-compete restriction applies to the leasing of portable storage containers within a 50-mile radius extending from the purchased Cool Binz territory boundaries in every direction.
However, the FDD clarifies that these non-competition provisions do not create or imply any additional restrictions upon your ownership of other Cool Binz franchise businesses in and around this geographic area. This means that while you cannot compete directly in the sold territory, your ownership of other Cool Binz franchises nearby is not affected.