Does a Cool Binz franchisee receive an exclusive territory?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
e in each Territory.
You will not receive an exclusive Territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
You will receive certain protected rights in your Territory. No other COOL BINZ Business may establish an office location within your Territory. No other COOL BINZ business may advertise in your Territory in print, media, door-to-door, mass electronic communication, or direct web-based advertising within your Territory. You may experience some indirect/carry-over advertising from other franchisees in media where the reach of advertising is difficult to restrict to zip codes, such as radio or indirect web-based advertising. If and when developed by us, you will receive NORA (defined below in Section 12.4) referrals for your assigned zip codes in accordance with the NORA program requirements. We cannot guarantee your participation in these programs. If you are not compliant with your Franchise Agreement, program requirements, or fail to perform program work adequately, we may direct NORA referrals to another franchisee or ourselves. You will receive Call Center leads for your assigned zip codes. If you are not compliant with your Franchise Agreement, we may direct these leads to another franchisee or ourselves.
You may relocate the Office Site within the Territory at your sole discretion but must immediately notify us of the change in address. During the term of the Franchise Agreement, we will not allow you to relocate the Territory; however, the exact boundaries of the Territory may change in the future, as future zip code changes are made by the United States Postal Service or Census Bureau.
Entering into a franchise agreement does not give you any options to purchase additional franchises, rights of first refusal or any similar rights to obtain additional franchises.
We reserve the right, as we deem appropriate, to:
- establish solicit, market to and build regional and national account relationships, whose offices may be located in the Territory as is further outlined in the Franchise Agreement;
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- offer and sell services and products anywhere that do not comprise a part of the System and, in connection with this right, to exploit our Marks, name, reputation, and know-how. We reserve the right to use other channels of distribution, such as the Internet, catalog sales, telemarketing, or other direct marketing, to make sales within your Territory, under trademarks different from the ones you will use under the franchise agreement, without compensation to you;
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- acquire businesses providing services similar to those provided under the System and to be acquired by such a business; and
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- sell products under the Marks through other channels of distribution. This includes the Franchisor using the Internet, catalogues, telemarketing, direct marketing, etc. to make sales within your Territory using the Marks or other trademarks. You may not use alternative distribution channels to make sales and you will not receive compensation for Franchisor's sales of products using the Marks through alternative distribution channels.
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- make sales within the Territory of products or Services the same or similar to those you will sell, under trademarks different from the Marks you will use under the Agreement. We do not currently do so, nor do we have plans to in the future, but we reserve the right to.
At this time, we do not have plans to operate or franchise a business under a different trademark selling similar goods and services as provided by a COOL BINZ Business.
Advertising and Servicing of Customers for Franchises
You may not advertise or establish an office outside your Territory without our prior written consent. Within the Territory, you have the right to advertise, market, solicit and service any customer desiring COOL BINZ services except as described in this section.
Source: Item 12 — TERRITORY (FDD pages 45–49)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, franchisees do not receive an exclusive territory. While franchisees are assigned a specific territory defined by zip codes with a population between approximately 350,000 and 500,000 people, Cool Binz retains the right to allow other franchisees, company-owned outlets, or other channels to compete within that territory. However, Cool Binz grants certain protected rights within the territory, such as preventing other Cool Binz businesses from establishing an office location or advertising in the territory through print, media, door-to-door, mass electronic communication, or direct web-based advertising.
Despite these protections, franchisees may still experience indirect advertising from other franchisees in media with broad reach, such as radio or indirect web-based advertising. Furthermore, other Cool Binz franchisees or company-owned outlets can accept jobs and service customers within a franchisee's territory without restriction. Cool Binz and its affiliates also reserve the right to sell products under different trademarks within the territory through alternative distribution channels like the Internet, catalog sales, or telemarketing, without compensating the franchisee.
Cool Binz also retains the right to establish and market to regional and national account relationships, even if their offices are located within a franchisee's territory. If a franchisee fails to meet the Minimum Gross Sales Requirement or maintain the minimum number of Portable Equipment containers, Cool Binz can allow other franchisees or company stores to provide services in the territory without compensation to the original franchisee. This lack of exclusivity and potential for internal competition could impact a franchisee's revenue and market share within their assigned territory.