factual

After the Cool Binz Franchise Agreement expires or terminates, can I be a consultant for a business offering leasing of mobile refrigeration units?

Cool_Binz Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. After the Term of the Franchise Agreement. 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 the 2025 Cool Binz Franchise Disclosure Document, after the franchise agreement expires or terminates, a franchisee is restricted from engaging in certain competitive activities. For a period of 18 months following the expiration or termination of the agreement, the franchisee (and their owners or designated general manager) cannot be involved in any business that offers 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. This restriction applies to various roles, including owner, shareholder, partner, director, officer, employee, consultant, salesperson, representative, or agent.

This means that for 18 months after leaving the Cool Binz system, a former franchisee cannot work as a consultant for a business that competes with Cool Binz by offering similar leasing services. This non-compete clause is designed to protect Cool Binz's business interests and prevent former franchisees from using their knowledge and experience gained within the Cool Binz system to directly compete against it.

The restriction also includes soliciting business from Cool Binz customers. This prevents a former franchisee from leveraging their existing relationships with customers they served as a Cool Binz franchisee to benefit a competing business. Franchisees should carefully consider these post-term restrictions and how they might impact their future career options before entering into a franchise agreement with Cool Binz.

It is important to note that these restrictions are in place to protect Cool Binz's market position and proprietary information. Franchisees should seek legal counsel to fully understand the scope and enforceability of these non-compete clauses in their specific jurisdiction.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.