Which sections of the Cool Binz Franchise Agreement address advertising obligations?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
New products, services and methods that we may have discovered or have developed for the System (Sections 3 and 7 of the Franchise Agreement);
The formulation and implementation of marketing, advertising, and promotional programs using the merchandising, advertising, and research data and advice as we may, periodically, develop for use in your local market (Sections 3 and 7 of the Franchise Agreement);
Give prior approval for use of business forms, business stationery, business cards, advertising materials, permanent materials, and forms that you intend to use (Section 7.A of the Franchise Agreement). We will continue to do this after you open the COOL BINZ Business.
Give prior approval to all marketing, advertising, and promotional materials prepared by you within ten days of our receipt of the proposed materials for Franchises (Section 2.G of the Franchise Agreement). We will continue to do this after you open the COOL BINZ Business.
You may not advertise or establish an office outside your Territory without our prior written consent. Within the Territory, you have the right to advertise, market, solicit and service any customer desiring COOL BINZ services except as described in this section. Advertising, soliciting customers, or establishing an office location outside of your Territory without our written consent is a default under the Franchise Agreement, and we may require that you pay to us the Non-Compliance Fee.
Within the Territory, you have the right to (1) advertise, market, and provide any Customer with the Services, except as otherwise described in this Agreement; (2) you have the right to NORA referrals for zip codes assigned to your Territory, except as provided in Sections 1.F and 7.A of this Franchise Agreement. We cannot guarantee your participation in these programs. If you are not compliant with your Franchise Agreement, program requirements, or fail to perform program work adequately, we may direct NORA referrals to another franchisee or ourselves; (3) you have the right to Call Center referrals for ZIP codes assigned to your Territory, subject to Section 2.I. below; and (4) you have the right to have the only COOL BINZ office location in your Territory.
You may not perform services or advertise via print, media, door-to-door, mass electronic communications, or direct web-based advertising outside of the Territory without our approval (collectively, "Out-of-Territory Conduct"), and we reserve the right to charge a penalty fee if you do so. Engaging in Out-of-Territory Conduct is a default of this Agreement and if you do so, then we may charge you a fee of $10,000 and/or terminate your Franchise Agreement.
COOL BINZ franchisees and Company Stores may not advertise within your Territory without your and our written approval, except as provided in Sections 1.D and 2.F of Franchise Agreement. If you are not in full compliance with this Agreement, then we have the right to allow another compliant COOL BINZ franchisee or Company Store to advertise in your Territory.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 34–35)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, several sections of the Franchise Agreement outline advertising obligations. Item 11 mentions that Cool Binz may offer guidance on marketing, advertising, and promotional programs, referencing Sections 3 and 7 of the Franchise Agreement. Additionally, Cool Binz requires prior approval for advertising materials, as stated in Section 7.A of the Franchise Agreement, and prior approval for marketing and promotional materials, as stated in Section 2.G of the Franchise Agreement.
Item 12 states that franchisees cannot advertise or establish an office outside their territory without Cool Binz's prior written consent. Advertising outside the territory without consent is a default under the Franchise Agreement, potentially incurring a Non-Compliance Fee.
Item 23 further clarifies territory rights, stating that franchisees have the right to advertise and market within their territory, but prohibits advertising outside the territory without approval. Engaging in unauthorized out-of-territory advertising may result in a $10,000 fee and/or termination of the Franchise Agreement. However, other Cool Binz franchisees or company-owned outlets may advertise within a franchisee's territory with written approval from both the franchisee and Cool Binz, unless the franchisee is not in full compliance with the agreement.