Does the restriction on engaging in similar businesses during the Cool Binz Franchise Agreement term apply to other franchises or authorizations entered into with Cool Binz?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
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- During the Term of the Franchise Agreement. During the term of this Franchise Agreement, you shall not:
- a. Engage as an owner, partner, shareholder, director, officer, employee, consultant, agent, or in any other capacity in any other business offering leasing of portable storage containers, devices and equipment, including, climate-controlled and nonclimate-controlled storage containers, mobile offices, mobile refrigeration units and/or freezers or other services that are the same as or similar to the services sold by the COOL BINZ Business (except for other franchises or authorizations we enter into with you;
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, the restriction on engaging in similar businesses during the franchise agreement term does not apply to other Cool Binz franchises or authorizations that the franchisor enters into with the franchisee.
Specifically, during the term of the Franchise Agreement, a franchisee cannot engage in any other business offering leasing of portable storage containers, devices, and equipment that are the same as or similar to the services sold by the Cool Binz Business. However, this restriction has an exception for "other franchises or authorizations we enter into with you." This means a franchisee can own and operate multiple Cool Binz franchises without violating the non-compete clause in their franchise agreement.
This is a benefit for franchisees looking to expand their business holdings within the Cool Binz system. It allows them to grow their operations without being penalized for owning multiple franchises. However, prospective franchisees should confirm with Cool Binz that this exception applies to all situations and that there are no hidden restrictions on owning multiple franchises.