What rights to the equipment manufacturer's warranty does CBI assign to the Cool Binz franchisee?
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 Cool Binz's 2025 Franchise Disclosure Document, Cool Binz franchisees receive the rights to the equipment manufacturer's warranty. Cool Binz itself warrants only that it delivers good and merchantable title, free of liens, and that the equipment meets Cool Binz's requirements under the Franchise Agreement.
Cool Binz explicitly states that it offers no other warranty beyond the title. Instead, Cool Binz assigns to the franchisee any and all rights to any express or implied warranty from the equipment manufacturer. This means that while Cool Binz does not provide its own warranty on the equipment's functionality or performance, franchisees can directly pursue claims under the manufacturer's warranty if the equipment proves defective.
This arrangement is fairly common in franchising, where the franchisor acts as a distributor of equipment manufactured by third parties. By assigning the manufacturer's warranty, Cool Binz avoids directly warranting equipment it does not produce, while still providing franchisees with a potential avenue for recourse if equipment malfunctions or fails to meet expectations. However, the franchisee's protection is ultimately dependent on the terms and enforceability of the manufacturer's warranty.