Is a Cool Binz franchisee required to install supplements 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 the 2025 Cool Binz Franchise Disclosure Document, franchisees are responsible for the expense of installing updates, supplements, modifications, or enhancements to the Required Software. The FDD states that Cool Binz may develop or designate updates, supplements, modifications, or enhancements to the Required Software, which the franchisee must install at their own expense.
Cool Binz franchisees must also maintain the computer hardware necessary to implement the Cool Binz Software and any Required Software. As technology advances, franchisees may be required to upgrade their hardware to meet changing software requirements, also at their own expense. While Cool Binz does not currently charge for software updates and upgrades, they may require franchisees to upgrade their computer hardware, software, and web-based applications at their sole expense.
The FDD indicates that Cool Binz estimates the cost of such upgrades will not exceed $5,000 annually; however, this cost is dictated by the cost of each required upgrade, without limitation. This means that while Cool Binz anticipates keeping costs below this amount, franchisees could potentially face expenses exceeding $5,000 in a given year if required upgrades are more costly. Prospective franchisees should factor in potential technology upgrade costs when assessing the financial viability of a Cool Binz franchise.