In the event of a future change to zip code boundaries, what is a Cool Binz franchisee allowed to do?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
d to in Section 1.D of the Franchise Agreement will be defined by
This is to confirm your acknowledgement and understanding that zip codes and/or their
the following zip codes, as located on the attached map:
| it will be your responsibility to clearly demonstrate that the customer was located in the Territory, | |
|---|---|
| when they first became a customer [INITIAL] |
In the event a new ZIP code is created entirely within your existing geographic Territory, it will become a part of the Territory, and y
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, a franchisee may continue to market to zip codes even if their boundaries change in the future. The document confirms that zip codes and their boundaries change periodically.
Specifically, if a new zip code is created entirely within a franchisee's existing geographic territory, that new zip code automatically becomes part of their territory, allowing them to market within it. If a new zip code is created along the boundary of a franchisee's territory, and at least one-third of the new zip code area falls within their territory as indicated on the attached map, the franchisee can market to that new zip code.
However, this right is shared with any adjoining Cool Binz owner who also has at least one-third of the new zip code in their previous territory. This means that in such a scenario, multiple franchisees may have the right to market to the same new zip code. It is important for prospective franchisees to understand these territorial nuances and potential overlaps, as they could impact their marketing strategies and competitive landscape.