After termination or expiration, is a Cool Binz franchisee allowed to use terms confusingly similar to 'COOL BINZ' in a subsequent business?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
arge you from your obligations to pay us pursuant to this Section and/or to indemnify or reimburse the transferee or purchaser pursuant to the applicable purchase or transfer agreement.
B. MARKS.
Upon the termination or expiration of this Agreement, you must:
-
- 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;
-
- 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;
-
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, after the franchise agreement terminates or expires, a franchisee cannot operate under any name or in any manner that might lead the public to believe they are still operating a Cool Binz business or a confusingly similar business. This restriction is in place to protect the Cool Binz brand and prevent customer confusion.
Specifically, the franchisee must take action to cancel all 'doing business as' (DBA) registrations related to the use of any Cool Binz mark. This includes names, logos, and other identifying features associated with the brand. The franchisee is also prohibited from representing to the public that any other business they own or operate is connected to the Cool Binz system.
These post-termination restrictions are standard in franchising to ensure that former franchisees do not unfairly compete with the franchisor or other franchisees by leveraging the brand's goodwill. Franchisees should carefully consider these limitations before entering into a franchise agreement, as they can impact future business ventures.