Is a Cool Binz franchisee allowed to use Confidential Information in any business other than their Cool Binz franchise?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
materials, and other methods, techniques and know-how concerning the operation of the Franchised Business which may be communicated to you or of which you may be apprised by virtue of your relationship with Franchisee and role as a Guarantor of the Franchise Agreement.
ARTICLE III NON-COMPETITION
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- During the Term of the Franchise Agreement. During the term of this Franchise Agreement, you shall not:
- a. Engage as an owner, partner, shareholder, director, officer, employee, consultant, agent, or in any other capacity in any other business offering leasing of portable storage containers, devices and equipment, including, climate-controlled and nonclimate-controlled storage containers, mobile offices, mobile refrigeration units and/or freezers or other services that are the same as or similar to the services sold by the COOL BINZ Business (except for other franchises or authorizations we enter into with you;
- b. Use our Confidential Information, System, COOL BINZ owners' intranet website, Operations Manual, Marks, Customer lists, Customer Information, trade secrets, trade dress, proprietary knowledge, or know-how, or any colorable imitations, in the design, development, or operation of any business other than the COOL BINZ Business franchised hereunder, unless specifically authorized by us; or
- c. 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 the Marks or the System.
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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
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.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, franchisees are restricted from using the franchisor's confidential information in any business other than their franchised Cool Binz business. Specifically, during the term of the Franchise Agreement, a franchisee cannot use Cool Binz's Confidential Information, System, COOL BINZ owners' intranet website, Operations Manual, Marks, Customer lists, Customer Information, trade secrets, trade dress, proprietary knowledge, or know-how, or any colorable imitations, in the design, development, or operation of any business other than the franchised Cool Binz Business, unless specifically authorized by Cool Binz. This restriction is in place to protect Cool Binz's proprietary assets and maintain the integrity of the brand.
This restriction extends to employees of the Cool Binz franchise as well. Cool Binz requires franchisees to have their Managing Owner, Designated Managers, sales, and/or account management employees sign non-disclosure and confidentiality agreements that Cool Binz has specified or approved. These agreements prevent employees from disclosing trade secrets, customer lists, or other confidential information about the Cool Binz system or business operations to any other person or legal entity. These agreements also prevent employees from servicing or soliciting any of the customers of the Cool Binz Business, except in their capacities as employees of the Cool Binz Business.
Even before a potential franchisee purchases a Cool Binz franchise, they are required to sign a Confidentiality/Non-Disclosure Agreement. This agreement ensures that any financial, business, marketing, and operational information provided to them by Cool Binz International, LLC remains confidential. The agreement explicitly states that the potential franchisee will not disclose this information to any third party or use it themselves, except for disclosure to an attorney, accountant, or business consultant for due diligence, provided they also comply with the agreement. This highlights the importance Cool Binz places on protecting its confidential information from the earliest stages of engagement.