factual

Under the Cool Binz franchise agreement, what sections contain the non-compete covenants?

Cool_Binz Franchise · 2025 FDD

Answer from 2025 FDD Document

nual, trade secrets, copyrighted materials, and other methods, techniques and know-how concerning the operation of the Franchised Business which may be communicated to you or of which you may be apprised by virtue of your relationship with Franchisee and role as a Guarantor of the Franchise Agreement.

ARTICLE III NON-COMPETITION

    1. 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.
    1. 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

of your former COOL BINZ Business or contact any of our supplies or vendors for any competitive business purpose, or (d) 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 with the Marks or the System or engage in any business relationship with any contacts with Customers or former Customers of the COOL BINZ Business, whether respect to collection of accounts receivable, or to provide them services, or for any other purpose whatever, within:

  • a. The Territory defined in the Franchise Agreement;
  • b. The geographic area encompassed by the Territories of any COOL BINZ franchisees, Company Stores, or any other COOL BINZ business operator, as of the date of the termination or expiration of the Franchise Agreement; or
  • c. A geographic area that is contained in a circle having a radius of 50 miles outward from the outside boundary of the Territory as defined in the Franchise Agreement.
    1. Intent and Enforcement. It is the parties' intent that the provisions of this Article III be judicially enforced to the fullest extent permissible under applicable law. Accordingly, the parties agree that any reduction in scope or modification of any part of the noncompetition provisions contained herein will not render any other part unenforceable. In the event of the actual or threatened breach of this Article III by you, any of your principals, or any members of their immediate family, Franchisor will be entitled to an injunction restraining such person from any such actual or threatened breach. You agree that in the event of the actual or threatened breach of this Article III, Franchisor's harm will be irreparable and that Franchisor has no adequate remedy at law to prevent such harm. You acknowledge and agree that each of you has previously worked or been gainfully employed in other careers and that the provisions of this Article III in no way prevent you from earning a living. You further acknowledge and agree that the time limitation of this Article III will be tolled during any default under this Personal Guaranty.

ARTICLE IV DISPUTE RESOLUTION

    1. Acknowledgment. You acknowledge that this Personal Guaranty is not a franchise agreement and does not confer upon you any rights to use the Franchisor's Proprietary Marks or its system.

Source: Item 23 — RECEIPTS (FDD pages 63–238)

What This Means (2025 FDD)

According to the 2025 Cool Binz Franchise Disclosure Document, non-compete covenants are addressed in several sections of the franchise agreement and its addenda.

During the term of the franchise agreement, Article III specifies that franchisees cannot engage in similar businesses, use Cool Binz's confidential information or systems for other businesses, or divert customers to competitors. After the agreement's expiration or termination, franchisees (including owners and designated general managers) are restricted for 18 months from engaging in similar businesses or soliciting Cool Binz customers.

Additionally, an addendum to the franchise agreement stipulates that if a franchisee sells their Cool Binz business, they must agree not to compete in the leasing of portable storage containers within a 50-mile radius of the purchased territory for 18 months after the sale. Furthermore, franchisees must ensure that their Managing Owner, Designated Managers, sales, and account management employees sign non-disclosure and confidentiality agreements, preventing them from disclosing trade secrets or soliciting customers, to the extent permitted by law.

For franchisees in California, the addendum supersedes the original agreement, reinforcing that the Cool Binz customer list is the exclusive property of Cool Binz International, LLC. Upon termination or expiration of the franchise agreement, franchisees must not retain the customer list and are prohibited from marketing to or dealing with customers on the list for 18 months.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.