Can other Cool Binz businesses advertise in a franchisee's territory?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
nds that we control.
You will receive certain protected rights in your Territory. No other COOL BINZ Business may establish an office location within your Territory. No other COOL BINZ business may advertise in your Territory in print, media, door-to-door, mass electronic communication, or direct web-based advertising within your Territory. You may experience some indirect/carry-over advertising from other franchisees in media where the reach of advertising is difficult to restrict to zip codes, such as radio or indirect web-based advertising. If and when developed by us, you will receive NORA (defined below in Section 12.4) referrals for your assigned zip codes in accordance with the NORA program requirements. We cannot guarantee your participation in these programs. If you are not compliant with your Franchise Agreement, program requirements, or fail to perform program work adequately, we may direct NORA referrals to another franchisee or ourselves. You will receive Call Center leads for your assigned zip codes. If you are not compliant with your Franchise Agreement, we may direct these leads to another franchisee or ourselves.
You may relocate the Office Site within the Territory at your sole discretion but must immediately notify us of the change in address. During the term of the Franchise Agreement, we will not allow you to relocate the Territory; however, the exact boundaries of the Territory may change in the future, as future zip code changes are made by the United States Postal Service or Census Bureau.
Entering into a franchise agreement does not give you any options to purchase additional franchises, rights of first refusal or any similar rights to obtain additional franchises.
We reserve the right, as we deem appropriate, to:
- establish solicit, market to and build regional and national account relationships, whose offices may be located in the Territory as is further outlined in the Franchise Agreement;
Source: Item 12 — TERRITORY (FDD pages 45–49)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, franchisees receive some territorial protections, but these are not absolute. Generally, no other Cool Binz business may establish an office location within a franchisee's territory. Furthermore, other Cool Binz businesses are restricted from advertising in a franchisee's territory through print, media, door-to-door methods, mass electronic communication, or direct web-based advertising. However, these restrictions are not absolute.
There are exceptions to this rule. A Cool Binz franchisee may experience indirect advertising from other franchisees in media where the reach is difficult to restrict to specific zip codes, such as radio or indirect web-based advertising. Additionally, if a franchisee fails to comply with the Franchise Agreement, Cool Binz has the right to allow other compliant franchisees or company stores to advertise in that franchisee's territory.
While franchisees have the right to advertise within their territory, they cannot advertise or establish an office outside their territory without Cool Binz's prior written consent. Advertising, soliciting customers, or establishing an office location outside of the assigned territory without written consent constitutes a default under the Franchise Agreement, potentially leading to a Non-Compliance Fee. Therefore, a Cool Binz franchisee must be aware of the specific advertising restrictions and compliance requirements to maintain their territorial advertising rights.