Can other Cool Binz franchisees service customers within another franchisee's territory?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
There are no Territory protections related to providing Services to customers located within your Territory.
Other COOL BINZ franchisees, or outlets we own, may accept jobs and Service customers in your Territory without restriction or limitation.
COOL BINZ franchisees and Company Stores may not advertise within your Territory without your and our written approval, except as provided in Sections 1.D and 2.F of Franchise Agreement. If you are not in full compliance with this Agreement, then we have the right to allow another compliant COOL BINZ franchisee or Company Store to advertise in your Territory.
In the event of national, regional, or local catastrophic event, significant weather event, or any single large loss project (each a "Major Event") within or outside of your Territory, we and our affiliates shall have the sole right to direct and control the provision of Services. You understand and agree that upon a Major Event, we, our affiliates, other existing System franchisees will be able to perform Services within the Territory and neither you nor the COOL BINZ Business will be entitled to any proceeds from the provision of Services performed by third parties within your Territory. Additionally, upon a Major Event, we may request you and other existing System franchisees to mobilize or dispatch containers to any site or sites, regardless of the distance from the COOL BINZ Business' Territory. Your participation upon a Major Event is not a requirement.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, franchisees should be aware that while they are granted a territory, there are no territory protections related to providing services to customers within that territory. This means that other Cool Binz franchisees or company-owned outlets can accept jobs and service customers within your designated territory without any restrictions. This lack of territorial exclusivity for service provision could lead to increased competition within a franchisee's area.
However, there are some restrictions on advertising. Other Cool Binz franchisees and company stores cannot advertise within your territory without your and Cool Binz's written approval, except as provided in specific sections of the Franchise Agreement. If a franchisee is not in full compliance with the agreement, Cool Binz reserves the right to allow another compliant franchisee or company store to advertise in that territory.
In the event of a major event, such as a natural disaster or large loss project, Cool Binz and its affiliates have the sole right to direct and control the provision of services, and other franchisees may be called upon to perform services within a franchisee's territory. In such cases, the franchisee whose territory is affected will not be entitled to any proceeds from the services performed by third parties. This highlights the importance of understanding the conditions under which Cool Binz can authorize other franchisees to operate within a specific territory, potentially impacting revenue.