factual

What post-termination obligations must I comply with to transfer my Cool Binz business?

Cool_Binz Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. you must affirm and comply with your post-termination obligations, including, without limitation, such obligations set forth in Sections 6 or 13.
    1. strictly comply with, observe, and abide by all of the post-termination provisions of this Agreement, including those as set forth in Sections 5, 6 and 13.D of this Agreement;
    1. neither directly nor indirectly represent to the public that any other business you may then own or operate, is or was operated as, or was in any way connected to, the System;
    1. not hold yourself out or advertise in any context that you are a present franchisee or were a former franchisee of ours;
    1. immediately refrain from engaging 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, providing Services, or for any other purpose whatsoever;
    1. assign any and all accounts receivable to us for collection, unless all Royalties and other payment obligations to us are paid in full. In connection with this assignment, you appoint us as attorney-in-fact to engage in these collection activities and you
    1. immediately cease operation under this Agreement and not operate or do business under any name or in any manner which might tend to give the general public the impression that you are operating a COOL BINZ Business, or any confusingly similar business;
    1. take the action required to cancel all DBAs or equivalent registrations relating to your use of any Mark;
    1. deliver to us, within seven (7) days, all electronic and hard copies of Customer Information;

You promise that, upon termination or expiration of this Agreement, you must immediately cease to use any of our Confidential Information (including any computer software that we have provided or made available to you) in any business or otherwise, return to us all 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.

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:

    1. deliver to us, within 30 days, evidence that is satisfactory to us of your compliance with each of the foregoing obligations.

Source: Item 23 — RECEIPTS (FDD pages 63–238)

What This Means (2025 FDD)

According to Cool Binz's 2025 Franchise Disclosure Document, if you transfer your Cool Binz business, you must affirm and comply with your post-termination obligations, including those outlined in Sections 6 or 13 of the franchise agreement. These obligations include complying with post-termination provisions in Sections 5, 6, and 13.D of the agreement. You must also refrain from representing any other business as connected to the Cool Binz system and avoid advertising yourself as a current or former Cool Binz franchisee.

Additionally, you are obligated to cease business relationships with customers or former customers of your Cool Binz business and assign all accounts receivable to Cool Binz for collection, unless all royalties and other payments are fully paid. You must also stop operating under the Cool Binz name and cancel all related DBA registrations. Within seven days, you need to deliver all electronic and hard copies of customer information to Cool Binz.

Furthermore, you must cease using Cool Binz's confidential information, including software, and return all copies of the operations manual and confidential materials. A covenant not to compete restricts you and your owners/designated general manager from engaging in similar businesses involving portable storage containers within your territory, the territories of other Cool Binz franchisees, or a 50-mile radius from your territory for 18 months after termination or expiration of the agreement. Finally, you must provide evidence of compliance with these obligations within 30 days of termination.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.