Can other Cool Binz businesses establish an office location within a franchisee's territory?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 12 — TERRITORY (FDD pages 45–49)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, franchisees are granted certain territorial protections. Specifically, no other Cool Binz business may establish an office location within a franchisee's designated territory. The territory is defined by specific zip codes awarded to the franchisee, with a population of approximately 350,000 to 450,000 people, up to a maximum of 500,000.
However, this territorial protection is not absolute. While other Cool Binz businesses cannot establish an office within the territory, they can still provide services to customers located within that territory. This means that other franchisees or company-owned outlets may accept jobs and service customers in a franchisee's territory without restriction. The franchisee is not entitled to any compensation for services provided by Cool Binz or other franchisees within their territory.
Furthermore, Cool Binz retains the right to establish and market to regional and national account relationships, even if their offices are located within a franchisee's territory. Cool Binz also reserves the right to use alternative distribution channels, such as the Internet or telemarketing, to make sales within the territory under different trademarks without compensating the franchisee. If a Cool Binz franchisee fails to comply with the Franchise Agreement, Cool Binz can allow other compliant franchisees or company stores to advertise in that franchisee's territory.
In summary, while Cool Binz franchisees are protected from other Cool Binz businesses establishing physical offices within their territory, they may still face competition from other franchisees servicing customers in their area, as well as from Cool Binz's corporate sales and alternative distribution channels. This limited territorial protection is a crucial factor for prospective franchisees to consider.