What events are considered a default under the terms of the Cool Binz software agreement?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Copies and Listings: The Licensee shall not copy or reverse-engineer the Product in whole or in part, nor shall it permit other parties to do so.
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- Protection of Product: Licensee agrees not to make available to any party the Product or any of its parts. Licensee agrees to take appropriate action with its employees and any other parties to obtain assurances of non-disclosure consistent with this Agreement.
- Licensee recognizes that the Product is Franchisor's copyrighted property, represents a large investment of human and financial resources by Franchisor, is a trade secret of Franchisor, and is confidential information. Licensee agrees to keep the Product, and all related materials, confidential. Licensee will use its best efforts, including any reasonable security precautions as Franchisor may request, to insure that the proprietary rights of Franchisor are preserved to the fullest extent possible under the law. In addition to the right to terminate this Agreement, Franchisor shall be entitled to seek appropriate injunctive relief in the event of any violation of the confidentiality of its copyrighted materials, and to bring an action at law where appropriate.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, several actions can trigger a default under the software license agreement. These include copying or reverse-engineering the Cool Binz software, or allowing others to do so. Franchisees also cannot make the software available to any other party or fail to take appropriate action to ensure non-disclosure by employees.
The FDD emphasizes that the Cool Binz software is copyrighted, represents a significant investment by the franchisor, and constitutes a trade secret and confidential information. Franchisees must keep the software and all related materials confidential and use their best efforts to protect the franchisor's proprietary rights.
If a franchisee violates the confidentiality of the copyrighted materials, Cool Binz is entitled to seek injunctive relief and bring legal action. These terms highlight the importance Cool Binz places on protecting its intellectual property and the serious consequences for franchisees who fail to comply with the software license agreement.