Under what circumstances does Cool Binz have the right to refuse a franchisee's request?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
erritory") and you may not advertise there without our prior written permission.
You must also select your business office site within the Territory ("Office Site"), and we must approve such Office Site in our sole discretion. You may not locate your office outside of the Territory without our express written consent and if you do so, then we may charge you a Non-Compliance Fee. If your Office Site is located outside of the Territory (pursuant to our prior permission), you agree that if a COOL BINZ franchisee purchases the Territory where your Office Site is located, or if a Company Store is opened, you will move the location of your Office Site to another site approved in writing by us, unless you have obtained written authorization from us, as well as from the new COOL BINZ franchisee.
You may relocate the Office Site within the Territory at your sole discretion but must immediately notify us of the change in address.
E. RIGHTS WE RESERVE.
We retain, as we deem appropriate, the rights to:
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- establish, and allow other COOL BINZ franchisees to establish, COOL BINZ Businesses at any location outside of the Territory on any terms and conditions, but subject to the same marketing restrictions upon their servicing in the Territory that you are subject to when servicing in their Territory; under no circumstances will another COOL BINZ Business or Company Store advertise in print media, door-to-door, mass electronic communication, or direct web-based marketing in the Territory, without your prior written consent, except only as provided in Section 1.D and 2.F of this Agreement;
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- establish, solicit, market to and build regional and national account relationships, whose offices may be located in the Territory as is further outlined in Sections 1.F and 1.H of this Agreement;
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- offer and sell services and products anywhere that does not comprise a part of the Territory and, in connection with this right, to exploit our Marks, name, reputation, and know-how;
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- solicit and perform 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 in any geographic market within or outside your Territory, in accordance with Section 1.E (7) and (9) and Section 1F below;
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- acquire businesses providing services similar to those provided under the System and to be acquired by such a business;
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- sell products under the Marks within and outside the Territory through any method of distribution. This includes sales of products using the Marks through alternative distribution channels. You may not use alternative distribution channels to make sales outside or inside the Territory and you may not receive compensation for sales of products using the Marks through alternative distribution channels except as described in the following paragraph.
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Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, Cool Binz retains significant rights regarding franchisee operations and requests. Cool Binz maintains the right to approve or disapprove a franchisee's business office site within the designated territory at its sole discretion. This means Cool Binz has the power to reject a proposed location for any reason. Furthermore, franchisees need express written consent from Cool Binz to locate their office outside of their assigned territory. Failure to obtain this consent may result in a Non-Compliance Fee.
Cool Binz also reserves the right to establish Cool Binz businesses outside a franchisee's territory and allow other franchisees to do the same. However, these other businesses are subject to marketing restrictions within the franchisee's territory. Additionally, Cool Binz can solicit and build regional and national account relationships, even if their offices are located within a franchisee's territory. Cool Binz also has the right to control service provisions during major events, potentially limiting a franchisee's ability to profit from services performed by third parties within their territory during such events.
Cool Binz also has a right of first refusal if a franchisee wants to sell their equipment to another franchisee. Cool Binz must approve any transaction. If Cool Binz financed any portion of the purchase price of the equipment, the franchisee acknowledges that the Franchise Agreement imposes restrictions and limitations on the resale of the Equipment. Franchisee acknowledges that the Equipment may not be sold, leased, or rented to or used by any other party, except under the conditions stated below, as provided in the Franchise Agreement, or as permitted in writing by CBI. The Equipment is proprietary and authorized for use only within the COOL BINZ franchise network. Franchisee covenants that Franchisee will not transfer title to the Equipment except in one of these two ways: Sell the Equipment to another COOL BINZ Franchisee in good standing under its franchise agreement at a mutually acceptable price. CBI has first right of refusal to purchase the Equipment and must approve any transaction. If CBI financed any portion of the purchase price of the equipment.