Does the non-compete agreement after selling a Cool Binz franchise restrict my ownership of other Cool Binz franchises in the same geographic area?
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 the 2025 Cool Binz Franchise Disclosure Document, the non-compete agreement you agree to when selling a Cool Binz franchise does not prevent you from owning other Cool Binz franchises in the same geographic area. Specifically, if you sell a Cool Binz franchise, you agree not to compete in the portable storage container leasing business within a 50-mile radius of the sold territory for 18 months.
However, the FDD explicitly states that this non-competition provision does not create any additional restrictions on your ownership of other Cool Binz franchise businesses in and around that geographic area. This means that even after selling a franchise, you can continue to own and operate other Cool Binz franchises nearby.
This is a significant benefit for franchisees looking to expand their Cool Binz business. It allows you to sell off territories without jeopardizing your existing investments in other Cool Binz locations. This flexibility can be valuable for managing and growing your franchise portfolio.