What rights does CBI assign to the Cool Binz franchisee regarding the equipment manufacturer's warranty?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
- **3.
WARRANTIES.** All Equipment is warranted by its manufacturer only.
CBI warrants only that the Equipment is delivered with good and merchantable title, free and clear of all liens, claims and encumbrances, and that the Equipment conforms to the requirements set by CBI under the Franchise Agreement.
CBI offers no other warranty and assigns to Franchisee any and all rights to any express or implied warranty of each Equipment manufacturer.
THERE ARE NO EXPRESS OR IMPLIED WARRANTIES ON THE EQUIPMENT OFFERED, GIVEN OR PROVIDED BY CBI INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, Cool Binz does not offer its own warranty on equipment but instead assigns the rights to the equipment manufacturer's warranty to the franchisee. This means that Cool Binz franchisees must rely on the manufacturer's warranty for any defects or issues with the equipment they purchase. Cool Binz only warrants that it delivers the equipment with good title, free of liens, claims, and encumbrances, and that the equipment meets Cool Binz's requirements under the Franchise Agreement.
This arrangement is fairly common in franchising, where the franchisor sources equipment from third-party manufacturers. By assigning the manufacturer's warranty, Cool Binz avoids directly warranting the equipment's performance. However, Cool Binz explicitly disclaims all other warranties, including those of merchantability or fitness for a particular purpose.
As a prospective franchisee, it is important to carefully review the terms and conditions of the manufacturer's warranty to understand the coverage, limitations, and procedures for making a claim. Franchisees should also consider the reputation and reliability of the equipment manufacturers used by Cool Binz, as the value of the warranty is only as good as the manufacturer standing behind it. This also means that the franchisee is responsible for maintaining the equipment according to the manufacturer's instructions.