Does the non-interference provision in the Cool Binz Franchise Agreement apply to the Territories of any Cool Binz franchisees?
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. | Dispute resolution by arbitration | Sections 15.F.1 and 15.F.2 | You must bring any disputes arising out of the Franchise Agreement or any other agreement with us to our President prior to bringing a claim before any third party in an attempt to resolve the dispute internally.
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 covenant extends to the territories of other Cool Binz franchisees. Specifically, during the 18 months following the expiration or termination of the Franchise Agreement, the franchisee, their owners, and their Designated Manager are restricted from engaging in certain business activities.
This restriction includes not engaging in any business offering leasing or portable storage equipment, or any services offered by Cool Binz's affiliates. Furthermore, they are prohibited from soliciting business from customers of their former Cool Binz Business. The franchisee is also barred from attempting to divert business or customers from the Cool Binz Business, or from engaging in any action detrimental to the goodwill of the Cool Binz Marks or System.
These restrictions apply within (i) the franchisee's former 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, meaning that the specific enforcement and interpretation of these non-compete terms can vary depending on the applicable state regulations.
For a prospective Cool Binz franchisee, this means that upon leaving the Cool Binz system, they will be significantly limited in their ability to operate a similar business in or near their former territory, as well as within other Cool Binz franchisees' territories and near any Cool Binz locations. This is a standard practice in franchising to protect the brand and other franchisees within the system.