What action must a Cool Binz franchisee take in the event of any infringement of, or challenge to, their use of the patent?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event of any infringement of, or challenge to, your use of the patent, you must immediately notify us, and we will have sole discretion to take such action as deemed appropriate. We will indemnify and hold you harmless from any suits, proceedings, demands, obligations, actions or claims, including costs and reasonable attorneys' fees, for any alleged infringement under federal or state patent law arising solely from your conforming use of the patent in accordance with the Franchise Agreement or as otherwise set forth by us in writing, if you have notified us promptly of the claim. We reserve the right, under the Franchise Agreement, to discontinue your use of the Patent. The franchise agreement does not provide you with any right to compensation if you are required to modify or discontinue use of the patent.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 50–52)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, if there is any infringement or challenge to a franchisee's use of the patent, the franchisee must immediately notify Cool Binz. Cool Binz then has the sole discretion to take whatever action it deems appropriate.
Cool Binz will indemnify and hold the franchisee harmless from any suits, proceedings, demands, obligations, actions, or claims, including costs and reasonable attorneys' fees, for any alleged infringement under federal or state patent law. This protection applies only if the infringement arises solely from the franchisee's conforming use of the patent in accordance with the Franchise Agreement or as otherwise set forth by Cool Binz in writing, and if the franchisee has promptly notified Cool Binz of the claim.
However, Cool Binz reserves the right to discontinue the franchisee's use of the patent. The Franchise Agreement does not provide the franchisee with any right to compensation if they are required to modify or discontinue use of the patent. This means a franchisee could be forced to stop using the patented technology without receiving any financial reimbursement for the disruption to their business.