factual

Does the Cool Binz franchise agreement specify any geographic limitations related to the personal guaranty?

Cool_Binz Franchise · 2025 FDD

Answer from 2025 FDD Document

of your former COOL BINZ Business or contact any of our supplies or vendors for any competitive business purpose, or (d) divert or attempt to divert any business or Customer of the COOL BINZ Business to any competitor, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks or the System or engage in any business relationship with any contacts with Customers or former Customers of the COOL BINZ Business, whether respect to collection of accounts receivable, or to provide them services, or for any other purpose whatever, within:

  • a. The Territory defined in the Franchise Agreement;
  • b. The geographic area encompassed by the Territories of any COOL BINZ franchisees, Company Stores, or any other COOL BINZ business operator, as of the date of the termination or expiration of the Franchise Agreement; or
  • c. A geographic area that is contained in a circle having a radius of 50 miles outward from the outside boundary of the Territory as defined in the Franchise Agreement.
    1. Intent and Enforcement. It is the parties' intent that the provisions of this Article III be judicially enforced to the fullest extent permissible under applicable law. Accordingly, the parties agree that any reduction in scope or modification of any part of the noncompetition provisions contained herein will not render any other part unenforceable. In the event of the actual or threatened breach of this Article III by you, any of your principals, or any members of their immediate family, Franchisor will be entitled to an injunction restraining such person from any such actual or threatened breach. You agree that in the event of the actual or threatened breach of this Article III, Franchisor's harm will be irreparable and that Franchisor has no adequate remedy at law to prevent such harm. You acknowledge and agree that each of you has previously worked or been gainfully employed in other careers and that the provisions of this Article III in no way prevent you from earning a living. You further acknowledge and agree that the time limitation of this Article III will be tolled during any default under this Personal Guaranty.

Source: Item 23 — RECEIPTS (FDD pages 63–238)

What This Means (2025 FDD)

According to the 2025 Cool Binz Franchise Disclosure Document, the personal guaranty has geographic limitations related to the non-compete agreement. Specifically, Article III outlines restrictions if the franchisee's agreement is terminated or expires.

The franchisee is restricted from engaging in activities that could harm the goodwill associated with the Cool Binz brand within (a) the territory defined in the Franchise Agreement, (b) the geographic areas of other Cool Binz franchisees or company stores, and (c) a 50-mile radius from the boundary of the franchisee's territory. These restrictions apply to the franchisee, their principals, and immediate family members.

Cool Binz emphasizes the intent to enforce these non-competition provisions to the fullest extent permissible by law. Any breach or threatened breach of Article III entitles Cool Binz to seek an injunction. The document states that the time limitation of Article III will be tolled during any default under the Personal Guaranty.

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.