What restrictions are placed on the Managing Owner or Designated Manager regarding other business activities for a Cool Binz franchise?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
The Managing Owner or, if applicable, the Designated Manager, must continuously exert her/his full-time best efforts to manage, promote and enhance the COOL BINZ Business, and such other COOL BINZ Businesses as we permit in our sole discretion. Without our prior written permission, the Managing Owner and, if applicable, the Designated Manager, must not engage in any other business or activity that conflicts with their obligations to operate the COOL BINZ Business on a full-time, year round basis.
ARTICLE III NON-COMPETITION
-
- 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;
- b. Use our Confidential Information, System, COOL BINZ owners' intranet website, Operations Manual, Marks, Customer lists, Customer Information, trade secrets, trade dress, proprietary knowledge, or know-how, or any colorable imitations, in the design, development, or operation of any business other than the COOL BINZ Business franchised hereunder, unless specifically authorized by us; 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 the Marks or the System.
-
- After the Term of the Franchise Agreement. 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 in any business offering leasing of portable storage containers, devices and equipment, including, climate-controlled and non-climate-controlled storage containers, mobile offices, mobile refrigeration units and/or freezers, (b) solicit business from Customers
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, the Managing Owner or Designated Manager must dedicate their full-time efforts to the Cool Binz business. Without prior written permission from Cool Binz, they are prohibited from engaging in any other business or activity that conflicts with their obligation to operate the Cool Binz Business on a full-time, year-round basis. This restriction ensures that the Cool Binz business receives the full attention and effort of its management.
This requirement is fairly standard in franchising, as franchisors want to ensure that franchisees are focused on growing their Cool Binz business and upholding brand standards. The restriction aims to prevent divided loyalties or the diversion of resources to other ventures. It is important to note that Cool Binz must provide prior written permission if the Managing Owner or Designated Manager wishes to engage in other business activities.
Additionally, during the term of the Franchise Agreement, the franchisee cannot engage in any business offering leasing of portable storage containers, devices, and equipment that are the same as or similar to the services sold by Cool Binz. They also cannot use Cool Binz's confidential information, system, website, operations manual, marks, customer lists, trade secrets, or know-how in any other business. Furthermore, franchisees are prohibited from diverting or attempting to divert any business or customer of the Cool Binz Business to any competitor.
After the term of the franchise agreement, for a period of 18 months, the franchisee and their owners and Designated General Manager cannot engage in any business offering leasing of portable storage containers, devices, and equipment or solicit business from customers. These non-compete clauses are designed to protect Cool Binz's market share and confidential information both during and for a limited time after the franchise agreement.