Does the non-interference provision in the Cool Binz Franchise Agreement apply to other Cool Binz business operators?

According to Cool Binz's 2025 Franchise Disclosure Document, the non-competition covenant extends to other Cool Binz business operators. Specifically, for 18 months after the expiration or termination of the Franchise Agreement, the franchisee, their owners, and their Designated Manager are restricted from engaging in any business relationship with customers or former customers within the franchisee's territory, the territories of other Cool Binz franchisees or Company Stores, or within a 50-mile radius of the franchisee's territory.

This provision means that a former Cool Binz franchisee cannot solicit or engage in business with customers or former customers of other Cool Binz outlets, including company-owned stores and other franchises. This restriction applies for 18 months after the franchise agreement ends, regardless of whether it's due to termination or expiration. The geographical scope includes the franchisee's own territory, the territories of other Cool Binz operators, and a 50-mile radius around the franchisee's territory.

This non-interference clause aims to protect the goodwill and customer base of the Cool Binz system. It prevents former franchisees from leveraging their knowledge of the Cool Binz business and customer relationships to unfairly compete with existing franchisees or the company itself. Franchisees should be aware of these limitations when considering exiting the Cool Binz system, as they will be restricted in their ability to operate a similar business in the specified areas for the given time frame.