Besides the franchisee, who else is bound by the Cool Binz non-compete agreement?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
copies of the Operations Manual and other confidential materials that we have loaned to you, and you shall not maintain any copies of any such materials, in whole or part.
D. COVENANT NOT TO COMPETE.
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, including membership in a local union, in any leasing of portable storage containers, devices and equipment, including, climate-controlled and non-climatecontrolled storage containers, mobile offices, mobile refrigeration units and/or freezers, (b) solicit business from Customers of your former COOL BINZ Business or contact any of our suppliers or vendors for any competitive business purpose, 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 with the Marks or the System or engage in any business relationship with any contacts with Customers or former Customers of the COOL BINZ Business, whether with respect to collection of accounts receivable, or to provide them services, or for any other purpose whatsoever, within:
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, in addition to the franchisee, several other parties may be bound by non-compete agreements. First, if the franchisee entity has multiple owners, those owners who do not execute the Franchise Agreement but still hold an ownership stake must sign a written confidentiality and non-compete agreement. This ensures that all individuals with a financial interest in the Cool Binz franchise are committed to protecting the brand's interests.
Second, the Designated General Manager of the Cool Binz franchise is subject to a non-compete agreement for a period of 18 months after the termination or expiration of the Franchise Agreement. This prevents a key employee with knowledge of the business operations and customer relationships from joining a competitor immediately after leaving the Cool Binz system.
Finally, upon the sale of a Cool Binz franchise, the seller (original franchisee) agrees not to compete in the leasing of portable storage containers for 18 months within a 50-mile radius of the sold territory. This protects the new franchisee's investment and prevents the seller from immediately starting a competing business and taking away existing customers. These measures are typical in franchising to protect the brand and the investments of individual franchisees.