For how long after the Cool Binz agreement expires or terminates are franchisees subject to the non-compete clause?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
copies of the Operations Manual and other confidential materials that we have loaned to you, and you shall not maintain any copies of any such materials, in whole or part.
D. COVENANT NOT TO COMPETE.
For a period of 18 months from the time of expiration or termination of this Agreement, you and your owners and, if applicable, your Designated General Manager, shall not (a) engage as an owner, shareholder, partner, director, officer, employee, consultant, salesperson, representative, or agent or in any other capacity, including membership in a local union, in any leasing of portable storage containers, devices and equipment, including, climate-controlled and non-climatecontrolled storage containers, mobile offices, mobile refrigeration units and/or freezers, (b) solicit business from Customers of your former COOL BINZ Business or contact any of our suppliers or vendors for any competitive business purpose, or (c) 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 with respect to collection of accounts receivable, or to provide them services, or for any other purpose whatsoever, within:
-
- the Territory as defined in this Agreement;
-
- 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 this Agreement; or
-
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, franchisees are subject to a non-compete clause for 18 months following the expiration or termination of their franchise agreement. During this period, the franchisee, their owners, and any Designated General Manager are restricted from engaging in any business offering the leasing of portable storage containers, devices, and equipment, including climate-controlled and non-climate-controlled storage containers, mobile offices, mobile refrigeration units, and/or freezers.
This non-compete extends to various roles such as owner, shareholder, partner, director, officer, employee, consultant, salesperson, representative, or agent in any similar leasing business. Additionally, franchisees are prohibited from soliciting business from former Cool Binz customers or contacting Cool Binz suppliers or vendors for competitive purposes. They cannot divert or attempt to divert any business or customer of the Cool Binz Business to any competitor, or perform any act injurious to the goodwill associated with the Cool Binz Marks or System.
The geographic scope of this non-compete includes the franchisee's former territory, the territories of other Cool Binz franchisees or company stores, and a 50-mile radius extending outward from the boundary of the former territory. This comprehensive non-compete aims to protect Cool Binz's market share, customer relationships, and proprietary information after a franchise agreement ends.