Is a Cool Binz franchisee required to install updates 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.
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 updates to the Required Software. Cool Binz retains the right, but not the obligation, to develop or designate updates, supplements, modifications, or enhancements to the Required Software, which the franchisee must install at their own expense. The franchisee is also responsible for all fees associated with the Required Software, Computer System, and POS System. Cool Binz does not have any obligation to provide ongoing maintenance, repairs, upgrades, or updates to the franchisee's Computer System or Required Software.
Cool Binz may require franchisees to update or upgrade their Computer System at any time during the franchise agreement. There is no limit on the frequency with which Cool Binz can mandate these updates or the cost to the franchisee. The franchisee is also responsible for maintaining, upgrading, and updating the Computer Systems to meet Cool Binz's requirements. Cool Binz may also require franchisees to use certain internet and cloud-based services or subscriptions as technology changes, at the franchisee's sole expense.
While Cool Binz Software is currently web-based and Cool Binz does not charge for software updates and upgrades, they may require franchisees to upgrade their computer hardware, software, and web-based applications at their sole expense as they deem necessary. Cool Binz estimates that 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.