When determining the geographic area after termination or expiration of the Cool Binz agreement, does it include the territories of other Cool Binz franchisees or company stores?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
For a period of 18 months from the time of expiration or termination of this Agreement, you and your owners and, if applicable, your Designated General Manager, shall not (a) engage as an owner, shareholder, partner, director, officer, employee, consultant, salesperson, representative, or agent or in any other capacity, including membership in a local union, in any leasing of portable storage containers, devices and equipment, including, climate-controlled and non-climatecontrolled storage containers, mobile offices, mobile refrigeration units and/or freezers, (b) solicit business from Customers of your former COOL BINZ Business or contact any of our suppliers or vendors for any competitive business purpose, or (c) divert or attempt to divert any business or Customer of the COOL BINZ Business to any competitor, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks or the System or engage 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, or to provide them services, or for any other purpose whatsoever, within:
-
- the Territory as defined in this Agreement;
-
- the geographic area encompassed by the Territories of any COOL BINZ franchisees, Company Stores, or any other COOL BINZ business operator, as of the date of the termination or expiration of this Agreement; or
-
- a geographic area that is contained in a circle having a radius of 50 miles outward from the outside boundary of the Territory as defined in this Agreement.
E. CONTINUING OBLIGATIONS AND OTHER OBLIGATIONS.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the geographic area used to enforce the non-compete agreement after the termination or expiration of the franchise agreement includes the territories of other Cool Binz franchisees and Company Stores. Specifically, for 18 months after the agreement ends, the franchisee cannot be involved in a similar business within their former territory, the territories of other Cool Binz franchisees or Company Stores, or within a 50-mile radius of their territory's boundary.
This non-compete clause prevents a former franchisee from leveraging their knowledge of the Cool Binz system and customer relationships to compete unfairly with existing franchisees or the company itself. The restriction applies to a wide range of activities, including being an owner, shareholder, partner, director, officer, employee, consultant, salesperson, representative, or agent in a competing business. It also prohibits soliciting business from former Cool Binz customers or engaging in any action that could harm the goodwill associated with the Cool Binz brand.
For a prospective franchisee, this means that upon leaving the Cool Binz system, their ability to work in the portable storage container leasing business will be significantly limited for 18 months. This restriction extends beyond their own territory to include areas where other franchisees and company-owned stores operate, plus a 50-mile buffer zone. Franchisees should carefully consider these limitations and how they might affect their future career options before investing in a Cool Binz franchise. The FDD also states that the non-compete provisions are intended to be enforced to the fullest extent permissible under applicable law, and Cool Binz is entitled to an injunction to prevent any breach of this clause, acknowledging that harm to Cool Binz would be irreparable and without adequate remedy at law.