factual

How does Cool Binz define its 'Corporate Territory'?

Cool_Binz Franchise · 2025 FDD

Answer from 2025 FDD Document

hisee(s), Company Store(s), us and/or COOL BINZ North America, LLC ("CBNA").

COOL BINZ Corporate Territory: The zip-codes that are owned by us, and have not been awarded to a COOL BINZ franchisee or a Company Store.

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Chain Customer: A non-residential customer, a group of customers, a partner or group of partners that operate under a common ownership or control, under the same

Source: Item 23 — RECEIPTS (FDD pages 63–238)

What This Means (2025 FDD)

According to Cool Binz's 2025 Franchise Disclosure Document, the 'COOL BINZ Corporate Territory' is defined as the zip codes owned by Cool Binz that have not been awarded to a franchisee or a Company Store. This means Cool Binz retains control over these areas and can operate or assign them as it sees fit.

For a prospective franchisee, this definition has several implications. First, it clarifies that not all geographic areas are available for franchising; Cool Binz reserves some territories for itself. Second, franchisees are generally prohibited from advertising in these corporate-owned zip codes without prior written permission from Cool Binz. This restriction is in place to protect Cool Binz's interests in areas where it has not yet established a franchise presence.

This policy is fairly common in franchising, as franchisors often retain certain territories for corporate operations or future expansion. It's important for potential Cool Binz franchisees to understand the boundaries of their territory and the restrictions on advertising outside of it to avoid penalties. The FDD states that engaging in unauthorized 'Out-of-Territory Conduct' could result in a fee of $10,000 and/or termination of the Franchise Agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.