What continuing obligations does a Cool Binz franchisee have after the expiration or termination of the Franchise Agreement?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
elease or discharge you from your obligations to pay us pursuant to this Section and/or to indemnify or reimburse the transferee or purchaser pursuant to the applicable purchase or transfer agreement.
B. MARKS.
Upon the termination or expiration of this Agreement, you must:
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- strictly comply with, observe, and abide by all of the post-termination provisions of this Agreement, including those as set forth in Sections 5, 6 and 13.D of this Agreement;
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- neither directly nor indirectly represent to the public that any other business you may then own or operate, is or was operated as, or was in any way connected to, the System;
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- not hold yourself out or advertise in any context that you are a present franchisee or were a former franchisee of ours;
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- immediately refrain from engaging 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, providing Services, or for any other purpose whatsoever;
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- assign any and all accounts receivable to us for collection, unless all Royalties and other payment obligations to us are paid in full. In connection with this assignment, you appoint us as attorney-in-fact to engage in these collection activities and you
specifically refrain from engaging in any of these collection activities. We must employ good faith efforts, including where appropriate in our sole and exclusive judgment the commencement of legal proceedings to collect the accounts receivable. We have no duty or obligation to you to accomplish the collection of such accounts receivable. We will remit to you any of these sums collected after first deducting all moneys owed to us and our costs of collection;
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- immediately cease operation under this Agreement and not operate or do business under any name or in any manner which might tend to give the general public the impression that you are operating a COOL BINZ Business, or any confusingly similar business;
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- take the action required to cancel all DBAs or equivalent registrations relating to your use of any Mark;
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- deliver to us, within seven (7) days, all electronic and hard copies of Customer Information;
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- remove all signage from vehicles and store fronts and deliver to us, within five (5) days, the Operations Manual and all copies thereof, and all proprietary information, confidential material, Required Software (including the COOL BINZ Software), signs, sign-faces, marketing and advertising materials, forms, uniform patches, decals (or proof of their removal) and other materials containing any Mark or otherwise identifying or relating to a COOL BINZ Business, and allow us, without liability to you or third parties, to remove all of these items from your vehicles and place of business;
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- notify the telephone company and all telephone directory publishers and Internet directory listings (including Google, Yahoo! and others) of the termination or expiration of your right to use any listing, telephone, telecopy, or other numbers and any telephone directory listings associated with any Mark, and authorize the transfer of these numbers and directory listings to us or, at our direction, instruct the telephone company to forward all calls made to your telephone number to numbers we specify. If you fail to do so, we can take whatever action is necessary, on your behalf and consistent with the telephone and other listing agreement attached to this Agreement as Exhibit C, to affect these events;
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- agree to cooperate with us to effectuate any change in telephone numbers or other transfers of our property to us, including the signing of any forms, authorizations or other documents necessary;
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- deliver to us, upon our request, an assignment of any real estate leases for property from which the COOL BINZ Business was operated;
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- Sell to us or our designee, at Franchisor's option, all COOL BINZ containers, trucks, other equipment, and all inventory in useable form bearing the Proprietary Marks at the lesser of the original purchase price thereof or at its then-current value, which value shall be decided in our reasonable judgment, within 15 days following the date of termination or expiration;
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- deliver to us, within 30 days, evidence that is satisfactory to us of your compliance with each of the foregoing obligations.
C. CONFIDENTIAL INFORMATION.
You promise that, upon termination or expiration of this Agreement, you must immediately cease to use any of our Confidential Information (including any computer software that we have provided or made available to you) in any business or otherwise, return to us all 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.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, franchisees have several obligations that continue after the termination or expiration of the Franchise Agreement. These obligations cover areas such as confidential information, non-compete restrictions, and the handling of customer data and equipment. Specifically, franchisees must cease using Cool Binz's confidential information, including software and operations manuals, and return all copies of these materials. They are also prohibited from retaining any copies of this information.
Cool Binz franchisees face a covenant not to compete for 18 months following the end of the agreement. During this period, they cannot engage in any business related to leasing portable storage containers within their former territory, the territories of other Cool Binz franchisees, or within a 50-mile radius of their territory's boundary. This restriction extends to soliciting business from former Cool Binz customers or engaging with Cool Binz's suppliers and vendors for competitive purposes. Franchisees also must not represent themselves as being connected to the Cool Binz system or engage in activities that could harm the goodwill associated with the Cool Binz brand.
Furthermore, upon termination or expiration, franchisees must deliver all electronic and hard copies of customer information to Cool Binz within seven days. They must also cooperate with Cool Binz to repurchase all or some of the equipment, unless the franchisee has arranged for the sale of the equipment to another Cool Binz franchisee with Cool Binz's consent. Franchisees are also obligated to assign any accounts receivable to Cool Binz for collection, provided that all royalties and other payment obligations to Cool Binz are paid in full. Finally, franchisees must take action to cancel all DBAs or equivalent registrations related to the use of any Cool Binz mark.