What is the geographic scope of the restrictions described in item 23 regarding Cool Binz franchises?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
ss. We may require 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
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the geographic scope of restrictions involves several key aspects of the franchise's territory and operations. The franchisee is assigned a specific territory, defined by a set of zip codes, within which they have the right to advertise, market, and provide services. However, this right is subject to certain limitations, as Cool Binz retains the right to allow other franchisees or company-owned outlets to establish businesses outside of the franchisee's territory.
Despite the assigned territory, Cool Binz franchisees face certain competitive conditions. Other franchisees or company outlets can accept jobs and service customers within the franchisee's territory without any restrictions. However, to provide some level of protection, other Cool Binz franchisees and company stores are restricted from advertising within the franchisee's territory via print, media, door-to-door, mass electronic communication, or direct web-based advertising, unless written approval is obtained from both the franchisee and Cool Binz.
Furthermore, franchisees are restricted from performing services or advertising outside of their designated territory without Cool Binz's approval. Unauthorized out-of-territory conduct can result in a penalty fee of $10,000 and/or termination of the Franchise Agreement. Cool Binz also retains the right to establish regional and national account relationships, even if the offices of these accounts are located within a franchisee's territory. Additionally, Cool Binz maintains ownership of all unassigned zip codes, referred to as the "COOL BINZ Corporate Territory," and franchisees are prohibited from advertising in these areas without prior written permission.