Does Cool Binz have the right to specify the makes of computer systems that franchisees must use?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
t our discretion.
We shall have the right to specify or require that certain brands, types, makes, and/or models of communications, computer systems, and hardware be used by you, including without limitation: (i) a compatible "back office" computer system that complies with our standards and specifications; (ii) a custom and proprietary point of sale system (the "POS System"), if we make
such a POS System part of our proprietary operating system in the future; (iii) printers and other peripheral hardware or devices; (iv) archival back-up systems; (v) Internet access mode and speed; and (vi) physical, electronic, and other security systems (collectively, the "Computer System"). Currently, your Computer System must include a DSL or cable modem high-speed Internet connection located at your Office Site, and a computer that meets the requirements of the System Standards and for handling of our then-current COOL BINZ Software or other Required Software. We estimate the cost of the computer system to be between $3,000 and $5,000. Computer specifications for hardware and Internet connectivity are provided in Sections 2.H and 2.I of the Franchise 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.
During the term of the franchise agreement, you must maintain the computer hardware necessary to implement the COOL BINZ Software and any Required Software, and comply with all specifications and standards prescribed by us regarding the COOL BINZ Software and any Required Software as provided in the Operations Manuals, System Standards or otherwise in writing. We reserve the right to create additional proprietary software programs (to be included as part of the Required Software), which you must use in connection with the COOL BINZ Business. The Required Software, including the COOL BINZ Software, will be our proprietary product, and the information collected therefrom will be deemed our confidential information.
You are required to participate in any System-wide computer network, intranet system, or extranet system that we implement and may be required by us to use such computer network, intranet system, or extranet system to, among other things: (i) submit your reports due under the Franchise Agreement to us online; (ii) view and print portions of the System Standards and Operations Manuals, including any updates or modifications thereto; (iii) download approved local advertising materials; (iv) communicate with us and other COOL BINZ franchisees; and (v) to complete any initial or ongoing training. You agree to use the facilities of any such computer network, intranet system or extranet system in strict compliance with the standards, protocols, and restrictions that we include in the System Standards and/or Operations Manuals, including those related to the encryption of confidential information and prohibitions against the transmission of libelous, derogatory or defamatory statements.
As technology advances, you may be required to upgrade your hardware to meet changing software requirements as we deem necessary. COOL BINZ Software is web-based and we do not charge you for software updates and upgrades at this time. We may require you to upgrade your computer hardware, software and web-based applications in our sole discretion and at your expense. 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 do not anticipate the cost of such upgrades to exceed $5,000 annually, however, the cost is dictated by the cost of each required upgrade, without limitation.
You must subscribe to, maintain, and utilize a fiber-optic, cable, or satellite high speed Internet connection and email network account with independent suppliers which periodically we approve. If you do not receive written approval within ten days of our written receipt of your request, such supplier will be considered disapproved. You must use an email name that we have approved that will have "@cool-binz.com" as its suffix for all business-related correspondence. You also must use, subscribe to, and pay for, as directed by us, a customized website connected to our website and managed by our website provider. You may not attempt to redirect the customized website.
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, Cool Binz has extensive rights to specify the technology franchisees use. Cool Binz can dictate the brands, types, makes, and models of communication, computer systems, and hardware that franchisees must use. This includes a compatible back-office computer system, a point-of-sale (POS) system (if implemented), printers, peripheral hardware, archival back-up systems, internet access mode and speed, and physical and electronic security systems.
Cool Binz requires franchisees to maintain the necessary computer hardware to run Cool Binz software and any other required software, adhering to all specifications and standards in the operations manual or in writing. Franchisees must also participate in any system-wide computer network that Cool Binz implements. As technology advances, Cool Binz can require franchisees to upgrade their hardware and software at the franchisee's expense.
Cool Binz also has the right to develop or designate the computer software programs franchisees must use, including business management and accounting software, and to specify the tangible media and database file structure of the computer system. Franchisees are responsible for all fees associated with required software, the computer system, and any POS system. Cool Binz can also require franchisees to use specific internet and cloud-based services. The FDD specifies that Cool Binz may require the computer system to automatically transmit data and reports and can electronically connect with the franchisee's system to monitor or retrieve data.
The initial estimated cost of the computer system is between $3,000 and $5,000. While Cool Binz does not anticipate upgrade costs exceeding $5,000 annually, the actual cost will depend on the required upgrades. Franchisees are also required to use an approved email name with "@cool-binz.com" and a customized website managed by Cool Binz's provider. They must also use the phone model, type, and provider that Cool Binz designates. These stipulations give Cool Binz significant control over the technology infrastructure used by its franchisees.