Following the termination or expiration of my Cool Binz franchise agreement, for how long am I prohibited from marketing to customers on the Cool Binz list?
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 in any business offering leasing of portable storage containers, devices and equipment, including, climate-controlled and non-climate-controlled storage containers, mobile offices, mobile refrigeration units and/or freezers, (b) solicit business from Customers
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, for a period of 18 months after the expiration or termination of the Franchise Agreement, a franchisee, their owners, and their Designated General Manager (if applicable) are restricted from soliciting business from customers of their former Cool Binz Business. This includes any direct or indirect attempts to divert business or customers to a competitor.
This non-solicitation clause prevents former franchisees from leveraging their knowledge of Cool Binz's customer base to unfairly compete with the franchisor or other franchisees. The restriction applies not only to the franchisee but also to their owners and designated general manager, ensuring a comprehensive prevention of competitive activities.
In addition to the non-solicitation clause, the franchisee is also prohibited from engaging in any business relationship with customers or former customers of the Cool Binz Business, whether for collecting accounts receivable, providing services, or any other purpose, within a defined geographic area. This area includes the franchisee's former territory, the territories of other Cool Binz franchisees or company stores, and a 50-mile radius from the boundary of the former territory. This ensures that the franchisee cannot use their existing relationships to compete with Cool Binz within a substantial area.
It is important for prospective franchisees to understand the full scope of these post-termination restrictions, as they can significantly impact their ability to engage in similar business ventures after leaving the Cool Binz system. Franchisees should carefully consider these limitations and how they might affect their future business plans.