Is a Cool Binz franchisee's right to use the Marks limited?

According to Cool Binz's 2025 Franchise Disclosure Document, a franchisee's right to use the Marks is indeed limited. Cool Binz retains ownership and all rights to the Marks, and the franchisee's right to use them stems solely from the Franchise Agreement. This use is specifically restricted to the operation of the Cool Binz Business in compliance with the agreement and any System Standards prescribed by Cool Binz. Franchisees must use only the Marks designated in writing by Cool Binz and in the manner authorized. The agreement explicitly states that the franchisee's use of the Marks and any resulting goodwill benefit Cool Binz exclusively, and the agreement does not grant the franchisee any independent interest in the Marks. Upon termination or expiration of the agreement, no monetary value will be assigned to any goodwill associated with the franchisee's use of the System and the Marks. Cool Binz also retains the right to award other licenses and franchises for the Marks, use the Marks in connection with marketing and selling any products and services, and develop other systems using the Marks without providing any rights to the franchisee.

Cool Binz maintains control over how the Marks are used, including advertising. Franchisees must obtain written approval from Cool Binz before using the Marks in any advertising materials, identification, or DBA (Doing Business As) name. Cool Binz has the discretion to approve or disapprove such uses, and can even require the franchisee to discontinue using any Mark, advertising, identification, or DBA, even if previously approved. Franchisees also need written approval before anyone can act as a representative for local promotion of the Cool Binz Business or Marks in public media.

Cool Binz also retains the right to modify or discontinue the use of any Mark, or to use additional or substitute names or marks, at its sole discretion. Franchisees must comply with Cool Binz's direction within ten days of receiving notice. Cool Binz is not liable for any expenses, losses, or damages the franchisee incurs as a result of any such changes, and the franchisee cannot take legal action against Cool Binz for these issues. Franchisees are also prohibited from using the Marks, or anything confusingly similar, as part of any corporate or legal name, or with any modifying words or symbols, without explicit written authorization from Cool Binz.

These stipulations are typical in franchising, as the franchisor needs to protect its brand identity and ensure consistent representation across all franchise locations. However, prospective Cool Binz franchisees should carefully consider these limitations and understand that their use of the Cool Binz Marks is subject to Cool Binz's control and can change during the term of the agreement. Franchisees must also notify Cool Binz immediately of any apparent infringement or challenge to their use of any Mark.