Are Cool Binz franchisees allowed to attempt to divert any Cool Binz business or customers to a competitor?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, franchisees are explicitly prohibited from diverting or attempting to divert any Cool Binz business or customers to a competitor. This restriction is in place during the term of the Franchise Agreement. Specifically, franchisees cannot directly or indirectly induce customers to move their business to a competitor or take any action that could harm the goodwill associated with the Cool Binz brand or system.
This non-compete clause is a standard provision in franchise agreements, designed to protect the franchisor's brand and customer base. It ensures that franchisees remain committed to the Cool Binz system and do not use their access to customers and proprietary information to benefit a competing business.
After the termination or expiration of the Franchise Agreement, a similar restriction applies for 18 months. During this period, former franchisees (and their owners or designated general manager) are prohibited from engaging in a business that offers similar services, or from soliciting business from Cool Binz customers. This extended restriction further safeguards Cool Binz's interests by preventing former franchisees from immediately leveraging their experience and contacts to compete against the franchise system.
Cool Binz also requires its franchisees to ensure that their employees sign non-disclosure and confidentiality agreements. These agreements prevent employees from disclosing trade secrets, customer lists, or other confidential information to any other person or entity. The 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.