Is a Cool Binz franchisee required to install modifications to the Required Software at their own expense?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
nchise Agreement.
During the term of the franchise agreement, we shall have the right, but not the obligation, to develop or designate: (i) computer software programs you must use in connection with any component of the Computer System, including the COOL BINZ Software, designated business management software and designated accounting software (the "Required Software"), which you shall install at your own expense; (ii) updates, supplements, modifications, or enhancements to the Required Software, which you shall install at your own expense; (iii) the tangible media upon which you record data; and (iv) the database file structure of the Computer System. You will be responsible for the payment of all fees associated with the Required Software (including the COOL BINZ Software), Computer System and POS System. Neither us nor our affiliates, or third parties have any obligation to provide ongoing maintenance, repairs, upgrades, or updates to your Computer System or Required Software.
At our request, you shall purchase or lease, and thereafter maintain, the Computer System, COOL BINZ Software, and the Required Software. We may require you to update or upgrade your Computer System at any time during the term of the franchise agreement. There is no limit on our frequency to do so, or the cost of your obligation to maintain, upgrade and update the Computer Systems in conformance with our requirements. We may also require you to use certain internet and cloud-based services or subscriptions as may become relevant as the System and technology changes, at your sole expense.
We may require that your Computer System be programmed to automatically transmit data and reports about the operation of the COOL BINZ Business to us. We shall also have the right to, at any time without notice, electronically connect with your Computer System to monitor or retrieve data stored on the Computer System or for any other purpose we deem necessary. There are no contractual limitations on our right to independently access the information and data on your POS System, COOL BINZ Software, and Computer System. You shall deliver to us all access codes, static Internet protocol ("IP") addresses and other information to facilitate our access to the data described in this Section within 30 days of opening the COOL BINZ Business. All client and customer data is our property and any data not accessible to us upon termination or expiration of the Franchise Agreement must be provided to us immediately.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 36–45)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, franchisees are responsible for the expenses associated with installing software and any modifications to it. Cool Binz has the right to develop or designate computer software programs, including the COOL BINZ Software, business management software, and accounting software, which the franchisee must install at their own expense. Additionally, any updates, supplements, modifications, or enhancements to the Required Software must also be installed at the franchisee's expense.
Cool Binz may require franchisees to update or upgrade their computer systems at any time during the franchise agreement. There is no limit to the frequency of these required updates or the cost to the franchisee. Cool Binz may also require franchisees to use certain internet and cloud-based services or subscriptions as technology changes, again at the franchisee's sole expense. While Cool Binz does not charge for software updates and upgrades at this time because the COOL BINZ Software is web-based, they may require franchisees to upgrade their computer hardware, software, and web-based applications at their own expense.
While Cool Binz does not anticipate the cost of upgrades to exceed $5,000 annually, the actual cost will depend on the specific upgrades required. This means a Cool Binz franchisee needs to be prepared for ongoing technology expenses to keep their business in compliance with Cool Binz's system standards. Franchisees should factor these potential costs into their financial planning and budget accordingly.