Does Cool Binz assume liability for damages related to a franchisee's high-speed internet connection issues?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
D. NO LIABILITY FOR TECHNOLOGY FAILURE.
We are not liable for any direct, incidental, or consequential damages, including but not limited to, lost profits, lost savings or consequential, punitive or incidental damages for any reason whatsoever, including but not limited to any cause arising out of or in any way connected to a technology related problem, such as high speed internet connection, electronic mail, software, website, computer, phone systems and other electronic equipment, or call center, or software-asa-service or other required online platforms or applications (i.e. Google MyBusiness and other internet profiles).
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, Cool Binz is not liable for damages related to technology problems, including issues with a franchisee's high-speed internet connection. Specifically, Cool Binz will not be responsible for any direct, incidental, or consequential damages, including lost profits or savings, that arise from technology-related problems. This includes issues related to internet connections, email, software, websites, computers, phone systems, electronic equipment, call centers, or required online platforms.
This lack of liability extends to various types of damages, such as consequential, punitive, or incidental damages, regardless of the cause. This means that if a Cool Binz franchisee experiences a loss of income or incurs additional expenses due to internet connectivity problems, they cannot hold Cool Binz responsible for those losses. The franchisee bears the risk of technology-related disruptions and their associated costs.
Cool Binz requires franchisees to subscribe to and maintain a high-speed internet connection from approved suppliers. While Cool Binz specifies this requirement, they do not assume responsibility for the connection's reliability or any resulting damages from its failure. This is a common practice in franchising, where franchisees are often responsible for managing their own technology infrastructure and mitigating associated risks. Prospective franchisees should carefully consider the potential costs and risks associated with technology failures and ensure they have adequate backup plans and insurance coverage.