factual

What are the obligations of a Cool Binz franchisee regarding the COOL BINZ Software licensing agreement, including its renewal frequency?

Cool_Binz Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchise Agreement | | will be the following person (if there is no Designated General Manager, please write "none"): | | «General Manager» |

EXHIBIT B TO THE FRANCHISE AGREEMENT

FRANCHISE MANAGEMENT SOFTWARE LICENSE AGREEMENT

Franchisor grants a renewable license ("License") to Licensee, upon the terms included in this Agreement and subject to all the terms of a Franchise Agreement between Franchisor and Licensee signed concurrently with this Agreement.

Licensee shall, during the term of this Agreement and upon the start of their COOL BINZ franchised business, pay Franchisor a recurring usage/support/upgrade payment. The amount of this payment may change periodically at the discretion of Franchisor. Failure to make any payment shall result in the immediate termination of this License.

TERMS AND CONDITIONS

    1. License Grant: Franchisor grants to Licensee a renewable License to use the COOL BINZ Franchise Management Software System ("Product" or "COOL BINZ Software"), and all subsequent upgrades, on Licensee's computer. This License does not extend to other parties, even if they use the same computer. Franchisor reserves the right to issue new modules, which may be separately licensed.
    1. Title: Title to the Product shall remain with Franchisor.
    1. Term: This License is a quarterly license. It shall automatically renew each quarter and shall remain in effect throughout the term of the Franchise Agreement between Franchisor and Licensee.
    1. Copies and Listings: The Licensee shall not copy or reverse-engineer the Product in whole or in part, nor shall it permit other parties to do so.
    1. Protection of Product: Licensee agrees not to make available to any party the Product or any of its parts. Licensee agrees to take appropriate action with its employees and any other parties to obtain assurances of non-disclosure consistent with this Agreement.
    • Licensee recognizes that the Product is Franchisor's copyrighted property, represents a large investment of human and financial resources by Franchisor, is a trade secret of Franchisor, and is confidential information. Licensee agrees to keep the Product, and all related materials, confidential. Licensee will use its best efforts, including any reasonable security precautions as Franchisor may request, to insure that the proprietary rights of Franchisor are preserved to the fullest extent possible under the law. In addition to the right to terminate this Agreement, Franchisor shall be entitled to seek appropriate injunctive relief in the event of any violation of the confidentiality of its copyrighted materials, and to bring an action at law where appropriate.
    1. Assignment and Sub-Licensing: This License shall not be assigned or sub-licensed by Licensee, except with the prior, specific written consent of Franchisor.
    1. Warranty: Franchisor warrants that the Product, when delivered to Licensee, shall be free from material defects and shall conform to the program documentation. Licensee acknowledges that the Product is of a complexity that it may have certain defects when

delivered. Licensee agrees that the sole liability of Franchisor shall be to correct program errors in the Product, and not to correct problems due to the hardware upon which the Product is operated, interaction with other non-standard software, or incorrect handling or employment of the Product by Licensee. All warranties extend only to the Licensee.

THE ABOVE WARRANTIES ARE IN LIEU OF ALL OTHER WARRANTIES, STATUTORY OR OTHERWISE, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, ALL IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

    1. Limitation of Liability; Limitation of Actions: FRANCHISOR SHALL NOT BE LIABLE FOR ANY INDIRECT, INCIDENTAL, OR CONSEQUENTIAL DAMAGES, INCLUDING, BUT NOT LIMITED TO LOST PROFITS FROM ANY CAUSE ARISING OUT OF OR IN ANY WAY CONNECTED WITH THE PRODUCT, NOR FOR ANY CLAIM OR DEMAND BY OR AGAINST LICENSEE. No action arising out of the transactions under this Agreement may be brought by either party more than one (1) year after the cause of action has occurred. Additionally, any cause of action for improper use, transfer, sub-licensing, or disclosure of the Product or materials may be brought within one (1) year of the date when Franchisor shall have actual knowledge thereof. In the event Franchisor must institute suit to enforce the terms and conditions of this Agreement, Licensee shall pay reasonable attorneys' fees and costs incurred by Franchisor.
    1. Termination by Franchisor: The parties agree that any of the following events shall be considered to be a default under the terms of this Agreement, shall entitle Franchisor to terminate this Agreement, and shall authorize Franchisor to immediately terminate Licensee's access to the Product:
    • a. Failure to maintain the Franchise Agreement between Franchisor and Licensee in good standing;
    • b. Failure to make payments of any kind to Franchisor in full or on time;
    • c. Failure to comply with any covenants or agreements herein;
    • d. Licensee's disposing of, licensing, or transferring the Product, other than strictly in accordance with the terms of this Agreement.
    • e.

Source: Item 23 — RECEIPTS (FDD pages 63–238)

What This Means (2025 FDD)

According to Cool Binz's 2025 Franchise Disclosure Document, franchisees are required to adhere to the terms of the COOL BINZ Franchise Management Software System license agreement. Cool Binz grants franchisees a renewable license to use the COOL BINZ Software, including all subsequent upgrades, on the franchisee's computer. This license is specific to the franchisee and does not extend to other parties, even if they use the same computer. Cool Binz retains the title to the software and may introduce new modules that could be separately licensed. The franchisee must pay a recurring usage/support/upgrade payment, the amount of which may change periodically at Cool Binz's discretion; failure to make this payment results in immediate termination of the license. The license is a quarterly license that automatically renews each quarter and remains effective throughout the term of the Franchise Agreement.

Cool Binz franchisees are prohibited from copying or reverse-engineering the COOL BINZ Software, in whole or in part, or allowing others to do so. Franchisees must protect the software and its parts, ensuring it is not made available to any third party. They are obligated to take appropriate action with their employees and other parties to ensure non-disclosure, recognizing that the software is Cool Binz's copyrighted property, a trade secret, and confidential information. Franchisees must keep the software and related materials confidential and use their best efforts to protect Cool Binz's proprietary rights, including any reasonable security precautions requested by Cool Binz.

Franchisees cannot assign or sub-license the COOL BINZ Software license without Cool Binz's prior written consent. Cool Binz warrants that the software will be free from material defects and conform to program documentation upon delivery to the franchisee. Franchisees must purchase or lease and maintain the Computer System, COOL BINZ Software, and any Required Software, paying all associated fees to Cool Binz or its approved suppliers. Franchisees must comply with Cool Binz's standards and specifications for the Computer System, COOL BINZ Software, and any Required Software, including security software, and keep their Computer System in good maintenance and repair, installing any upgrades or modifications as directed by Cool Binz in writing, all at their own expense.

Cool Binz may require the franchisee's Computer System to automatically transmit data and reports about the operation of the Cool Binz business. Cool Binz has the right to electronically connect with the franchisee's Computer System to monitor or retrieve data at any time without notice. Franchisees must deliver all access codes and other information to facilitate Cool Binz's access to the data within 30 days of opening the Cool Binz Business. All client and customer data is Cool Binz's property and must be provided immediately upon termination or expiration of the Franchise Agreement if not accessible to Cool Binz. Upon termination or expiration of the Franchise Agreement, franchisees must immediately cease using any of Cool Binz's Confidential Information, including any computer software, and return all copies of the Operations Manual and other confidential materials.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.