How does Cool Binz define the 'Territory' granted to a franchisee?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
eir own behalf as well as those who purchase on the behalf of a third party.
Portable Equipment: storage containers, devices and equipment designated or approved by us.
Territory: The specific area where the COOL BINZ Business is to be operated, which consists of a set of zip codes.
C. AWARD OF FRANCHISE.
You have applied for a franchise to own and operate a COOL BINZ Business. Subject to all of the terms and conditions of this Agreement, we hereby award you a franchise (the "Franchise") to operate a COOL BINZ Business utilizing the System and the Marks in the Territory that you and we have agreed to as described on the Summary Page and in Section 1.D below. There are no Territory protections related to providing services to customers located within your Territory. Other COOL BINZ franchisees, or outlets we own, may accept jobs and service customers in your Territory without restriction or limitation. No other COOL BINZ franchisee or Company Store may advertise in print, media, door-to-door, mass electronic communication, or direct web-based advertising within your Territory. Should you not be in full compliance with this Agreement, we reserve the right to allow other compliant COOL BINZ franchisee or Affiliate to perform work in your Territory. Additionally, you may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
The term of the franchise will be ten (10) years (the "Initial Term") commencing on the date of this Agreement.
You must at all times faithfully, honestly, and diligently perform your obligations under this Agreement. Except as stated herein, you must designate at least one managing owner (the "Managing Owner") who will be our primary individual contact with the COOL BINZ Business and who we will approve in our sole discretion. A Managing Owner may, in our sole discretion, serve as the Managing Owner of more than one COOL BINZ Business that is owned by you; provided, however, that we may, in our sole discretion, require you to designate a person who will serve as the primary individual contact for this COOL BINZ Business (the "Designated Manager"). We must approve of the Designated Manager in writing, which we may grant in our sole discretion. The Managing Owner and, if applicable, the Designated Manager, must successfully complete our JumpStart and Initial Training Programs as described in and required by the Franchise Agreement. The Designated Manager is not required to have an ownership interest in the COOL BINZ Business. The Managing Owner or, if applicable, the Designated Manager must continuously exert her/his full-time best efforts to manage, promote and enhance the COOL BINZ Business, and such other COOL BINZ Businesses as we permit in our sole discretion. Without our prior written permission, the Managing Owner and, if applicable, the Designated Manager, must not engage in any other business or activity that conflicts with their obligations to operate the COOL BINZ Business on a full-time, year round basis. In the case of
multiple owners, the owner with day-to-day responsibility and authority to run the COOL BINZ Business and with whom we will communicate shall be identified on the signature line as the first Managing Owner.
Before commencing operation of the COOL BINZ Business, you must employ at least one person who has completed the Initial Training. At all times during the term of the Franchise Agreement, you must have employed at the COOL BINZ Business a person who has completed the Initial Training.
Before attending the Initial Training and/or upon any change to the legal entity ownership, you must submit to us a corporate resolution, or similar action, which states the name of the corporation or LLC, the legal names of all of the partners or shareholders, the percentage of ownership that each member controls, their place of residence and their agreement to be bound by the terms of the Franchise Agreement. In the case of multiple owners, you must submit a dispute resolution procedure acceptable to us in our sole discretion that states what you will do in the event that there is a conflict between any owners of the franchisee entity. In addition, at all times, the owners who have executed the Franchise Agreement must control 67% of the franchisee entity. The remaining owners must sign a written confidentiality and non-compete agreement in the form we prescribe.
At the start of their employment, you must require, as consideration for employment, each of your Managing Owner, Designated Managers, sales and/or account management employees to sign non-disclosure and confidentiality agreements that we have specified or approved. Such agreements will prohibit disclosure, by the employee to any other person or legal entity, of any trade secrets, customer lists, or other information, knowledge, or know-how regarding the System or the operation of the COOL BINZ Business, which is deemed confidential and/or proprietary by us.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the 'Territory' is defined as the specific area where the Cool Binz Business is to be operated, consisting of a set of zip codes. The initial franchise fee purchases a territory that will encompass approximately 350,000 to 450,000 people to a maximum of 500,000 people. For territories with populations greater than 450,000 people, an additional fee of $0.20 for each person over 450,000 is added to the initial franchise fee. For example, the initial franchise fee for a territory with a population of 500,000 will be $69,900.
Within the assigned territory, a Cool Binz franchisee has the right to advertise, market, and provide services to any customer, with some exceptions outlined in the agreement. They also have the right to NORA referrals and Call Center referrals for zip codes within their territory, although participation in these programs isn't guaranteed. Furthermore, the franchisee has the right to have the only Cool Binz office location in their territory. However, there are no territory protections related to providing services to customers located within the franchisee's territory.
Cool Binz franchisees must select a business office site within their territory, subject to Cool Binz's approval. Relocation of the office site within the territory is allowed with notification to Cool Binz. Franchisees are restricted from performing services or advertising outside their territory without approval, and doing so may result in a penalty fee of $10,000 and/or termination of the Franchise Agreement. Cool Binz retains the right to establish Cool Binz businesses outside the franchisee's territory and to engage in regional and national account relationships, even with offices located within the franchisee's territory.
It is important to note that other Cool Binz franchisees or company-owned outlets may accept jobs and service customers within a franchisee's territory without restriction. However, other Cool Binz franchisees and Company Stores may not advertise in print, media, door-to-door, mass electronic communication, or direct web-based advertising within the franchisee's territory without written approval. All zip codes that have not been awarded to a Cool Binz franchisee or Company Store are corporately owned and the franchisee may not advertise there without prior written permission.