Does the non-interference provision in the Cool Binz Franchise Agreement apply to Cool Binz Company Stores?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
in any business relationship | | | Provisions | Section in Franchise Agreement | Summary | |----|-----------------------------------------|--------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | | with any of your customers or former customers, within: (i) the Territory; (ii) the Territories of any COOL BINZ franchisees, COOL BINZ Company Store, or any other COOL BINZ business operator; or (iii) a radius of 50 miles from the Territory. This provision is subject to state law. | | s. | Modification of Agreement | Section 15.J | Modification of the Franchise Agreement must be in writing and agreed upon by both parties. | | t. | Integration/me rger clause | Section 15.L | Only the terms of the Franchise Agreement are binding (subject to state law). Any representations or promises outside of the Disclosure Document and Franchise Agreement may not be enforceable. Nothing in the agreement or in any related agreement is intended to disclaim the representations made in the Franchise Disclosure Document. | | u.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 53–58)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the non-competition covenants outlined in Section 13.D of the Franchise Agreement extend to Cool Binz Company Stores. Specifically, for 18 months following the expiration or termination of the Franchise Agreement, franchisees, their owners, and their Designated Manager are prohibited from engaging in any business that offers leasing or portable storage equipment, or any services offered by Cool Binz's affiliates.
This restriction includes soliciting business from customers of the former Cool Binz Business and attempting to divert business or customers from the Cool Binz Business. Furthermore, it prevents any action that could harm the goodwill of the Marks or the System. This non-compete clause applies within (i) the Territory; (ii) the Territories of any Cool Binz franchisees, Cool Binz Company Store, or any other Cool Binz business operator; or (iii) a radius of 50 miles from the Territory.
This provision means that a former Cool Binz franchisee is restricted from operating a competing business within the defined geographical areas, which include territories of both franchised and company-owned stores. This aims to protect the Cool Binz brand and its network of franchisees and company stores from direct competition by former franchisees, ensuring a degree of market exclusivity and goodwill protection for all stakeholders within the Cool Binz system.
Prospective franchisees should carefully consider the implications of this non-compete clause, particularly if they plan to remain in the same geographic area after the termination or expiration of their franchise agreement. Understanding the scope and duration of these restrictions is crucial for future business planning.