Does the Cool Binz Franchise Agreement define a specific Territory?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, the Franchise Agreement does define a specific territory for each franchisee. 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 Cool Binz franchisee has the right to advertise, market, and provide services to any customer within their territory, with some exceptions outlined in the agreement. They also have the right to NORA and Call Center referrals for zip codes assigned to their territory, although participation in these programs is not guaranteed. Furthermore, the franchisee has the right to have the only Cool Binz office location within their designated territory.
However, the FDD also states that there are no territory protections related to providing services to customers located within the franchisee's territory. Other Cool Binz franchisees or company-owned outlets may accept jobs and service customers in the franchisee's territory without restriction. Cool Binz franchisees and Company Stores may not advertise within your Territory without your and our written approval, except as provided in Sections 1.D and 2.F of Franchise Agreement. If you are not in full compliance with this Agreement, then we have the right to allow another compliant COOL BINZ franchisee or Company Store to advertise in your Territory. This means that while a franchisee has a defined territory, they may still face competition from other franchisees or company-owned stores within that territory.