What is a Cool Binz franchisee prohibited from doing with the patent?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
Your rights to the use of the patent are derived solely from your Franchise Agreement. You will only use the patented technology as we authorize. In using the patented technology, you must strictly follow our rules, standards, specifications, requirements and instructions which may
be modified by us in our discretion. All goodwill associated with patent remains our exclusive property. You may not use the patent with any unauthorized product or service or in any way not explicitly authorized by the Franchise Agreement or that we may otherwise approve. When your Franchise Agreement expires or terminates, all rights for you to use the patented technology shall cease and you shall not maintain any rights to use the patent.
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 the 2025 Cool Binz Franchise Disclosure Document, a franchisee's rights to use the company's patent are derived solely from the Franchise Agreement. Cool Binz franchisees can only use the patented technology as authorized by Cool Binz and must strictly adhere to the company's rules, standards, specifications, requirements, and instructions, which Cool Binz may modify at its discretion. All goodwill associated with the patent remains the exclusive property of Cool Binz.
Cool Binz franchisees are prohibited from using the patent with any unauthorized product or service or in any way not explicitly authorized by the Franchise Agreement or otherwise approved by Cool Binz. Upon expiration or termination of the Franchise Agreement, all rights to use the patented technology cease, and the franchisee cannot maintain any rights to use the patent.
In the event of any infringement or challenge to the franchisee's use of the patent, the franchisee must immediately notify Cool Binz, which has sole discretion to take appropriate action. Cool Binz will indemnify and hold the franchisee harmless from suits, proceedings, demands, obligations, actions, or claims, including costs and reasonable attorneys' fees, for alleged infringement under federal or state patent law arising 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, provided the franchisee promptly notifies Cool Binz of the claim. Cool Binz reserves the right to discontinue the franchisee's use of the patent, and the Franchise Agreement does not provide any right to compensation if the franchisee is required to modify or discontinue use of the patent.