After the Cool Binz Franchise Agreement expires or terminates, does the restriction on engaging in a similar business apply to my owners?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 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 Cool Binz's 2025 Franchise Disclosure Document, the non-compete restrictions do apply to the franchisee's owners after the Franchise Agreement expires or terminates. Specifically, for a period of 18 months after the agreement ends, the franchisee and their owners are restricted from engaging in a similar business.
This restriction prevents them from being an owner, shareholder, partner, director, officer, employee, consultant, salesperson, representative, or agent in any business that offers leasing of portable storage containers, devices, and equipment. This includes climate-controlled and non-climate-controlled storage containers, mobile offices, mobile refrigeration units, and/or freezers.
Additionally, the franchisee and their owners are prohibited from soliciting business from Cool Binz customers during this 18-month period. This post-term non-compete agreement is a fairly standard practice in franchising to protect the franchisor's business model, customer relationships, and proprietary information.