If I sell my Cool Binz franchise, what is the geographic scope of the non-compete agreement I must agree to?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
It is also agreed and understood that if you sell any one (1) or more of your COOL BINZ franchise businesses, as a condition precedent to our approving your purchaser as a new COOL BINZ franchisee, you will agree with your purchaser and with us not to compete for 18 months after the sale closing, in the leasing of portable storage containers business within a geographic area extending out from the purchased COOL BINZ territory boundaries, in every direction, for 50 miles. Provided, however, these non-competition provisions do not create or imply any additional restrictions upon your ownership of other COOL BINZ franchise business(es) in and around this geographic area.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, if you sell your Cool Binz franchise business, you must agree not to compete in the leasing of portable storage containers. This non-compete extends for 18 months after the sale closing. The geographic scope of this restriction covers an area extending 50 miles in every direction from the purchased Cool Binz territory boundaries.
This non-compete agreement is a condition for Cool Binz approving the purchaser as a new franchisee. However, the document specifies that these non-competition provisions do not create or imply any additional restrictions on your ownership of other Cool Binz franchise businesses in and around this geographic area. This means that while you cannot compete within the specified area concerning the sold franchise, your rights to operate other Cool Binz franchises you own nearby are not affected.
Such non-compete agreements are common in franchising to protect the brand and the new franchisee's investment. The 50-mile radius and 18-month duration are fairly standard terms, but it is important to note that the enforceability of non-compete agreements can vary by state. A prospective franchisee should consult with a legal professional to understand the specific implications and enforceability of this clause in their jurisdiction.