What geographic areas are covered by the Cool Binz non-compete agreement?
Cool_Binz Franchise · 2025 FDDAnswer 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.
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- 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.
ARTICLE IV DISPUTE RESOLUTION
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, there are multiple non-compete agreements that affect the franchisee. During the term of the franchise agreement, the franchisee cannot engage in any similar business, use Cool Binz's confidential information or system, or divert customers to a competitor.
After the franchise agreement expires or terminates, the franchisee, their owners, and designated general manager are restricted for 18 months. They cannot participate in a similar business or solicit business from Cool Binz customers. These restrictions apply to the franchisee's territory, the territories of other Cool Binz franchisees or company stores, and an area within a 50-mile radius from the boundary of the franchisee's territory.
Additionally, if a franchisee sells their Cool Binz business, they must agree not to compete in the leasing of portable storage containers within a 50-mile radius extending from the purchased territory's boundaries for 18 months after the sale. This agreement is a condition for Cool Binz approving the purchaser as a new franchisee. These non-compete provisions do not impose additional restrictions on the franchisee's ownership of other Cool Binz franchises in the area.