What is the geographic scope of the Cool Binz franchisee's marketing efforts?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
re you to send us a copy of such agreements once fully signed.
D. TERRITORY.
Within the Territory, you have the right to (1) advertise, market, and provide any Customer with the Services, except as otherwise described in this Agreement; (2) you have the right to NORA referrals for zip codes assigned to your Territory, except as provided in Sections 1.F and 7.A of this Franchise Agreement. 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; (3) you have the right to Call Center referrals for ZIP codes assigned to your Territory, subject to Section 2.I. below; and (4) you have the right to have the only COOL BINZ office location in your Territory.
You may not perform services or advertise via print, media, door-to-door, mass electronic communications, or direct web-based advertising outside of the Territory without our approval (collectively, "Out-of-Territory Conduct"), and we reserve the right to charge a penalty fee if you do so. Engaging in Out-of-Territory Conduct is a default of this Agreement and if you do so, then we may charge you a fee of $10,000 and/or terminate your Franchise Agreement. 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.
You may not advertise in any way, any Customers outside the Territory, even if the area has not been awarded to another COOL BINZ Affiliate, without our prior written permission. All ZIP codes that have not been awarded to a COOL BINZ franchisee or Company Store are corporately owned ("COOL BINZ Corporate Territory") and you may not advertise there without our prior written permission.
You must also select your business office site within the Territory ("Office Site"), and we must approve such Office Site in our sole discretion. You may not locate your office outside of the Territory without our express written consent and if you do so, then we may charge you a Non-Compliance Fee. If your Office Site is located outside of the Territory (pursuant to our prior permission), you agree that if a COOL BINZ franchisee purchases the Territory where your Office Site is located, or if a Company Store is opened, you will move the location of your Office Site to another site approved in writing by us, unless you have obtained written authorization from us, as well as from the new COOL BINZ franchisee.
You may relocate the Office Site within the Territory at your sole discretion but must immediately notify us of the change in address.
E. RIGHTS WE RESERVE.
We retain, as we deem appropriate, the rights to:
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- establish, and allow other COOL BINZ franchisees to establish, COOL BINZ Businesses at any location outside of the Territory on any terms and conditions, but subject to the same marketing restrictions upon their servicing in the Territory that you are subject to when servicing in their Territory; under no circumstances will another COOL BINZ Business or Company Store advertise in print media, door-to-door, mass electronic communication, or direct web-based marketing in the Territory, without your prior written consent, except only as provided in Section 1.D and 2.F of this Agreement;
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Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, a franchisee's marketing efforts are primarily focused within their designated territory, which consists of a set of zip codes. Within this territory, the franchisee has the right to advertise, market, and provide services to customers. However, this right is subject to certain conditions and exceptions outlined in the Franchise Agreement.
The Cool Binz franchisee is restricted from performing services or advertising outside of their assigned territory without prior approval from Cool Binz. Engaging in unauthorized out-of-territory conduct can result in a penalty fee of $10,000 and/or termination of the Franchise Agreement. This restriction applies to advertising via print, media, door-to-door methods, mass electronic communications, and direct web-based advertising. Additionally, franchisees are prohibited from advertising to customers outside their territory, even in areas not yet assigned to another franchisee or company store, without written permission from Cool Binz.
Despite these territorial marketing restrictions, Cool Binz retains the right to establish and allow other franchisees to establish Cool Binz businesses at any location outside of the franchisee's territory. These other Cool Binz businesses are subject to the same marketing restrictions when servicing within the franchisee's territory. Furthermore, Cool Binz reserves the right to establish, solicit, market to, and build regional and national account relationships, even if their offices are located within the franchisee's territory.
The franchisee is required to contribute two percent (2%) of their gross sales monthly to the Brand Marketing Fund, which Cool Binz uses to develop and distribute advertising on a national, regional, and/or local level. This fund supports various advertising mediums, including television, radio, magazines, newspapers, direct mail, outdoor billboards, and the development and maintenance of an internet website. The franchisee is also expected to market their Cool Binz business's services directly to residences, commercial entities, and governments/municipalities within their territory through affinity marketing programs, direct mail, networking, and sales calls.