Does the Cool Binz software license extend to other parties if they use the same computer?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
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- Title: Title to the Product shall remain with Franchisor.
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- 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.
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- 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.
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- 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.
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- Assignment and Sub-Licensing: This License shall not be assigned or sub-licensed by Licensee, except with the prior, specific written consent of Franchisor.
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- 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
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the software license granted to the franchisee does not extend to other parties, even if they use the same computer. This means that only the franchisee who is granted the license can use the COOL BINZ Franchise Management Software System on their computer.
This restriction is common in franchising to protect the franchisor's intellectual property and maintain control over the use of their proprietary software. It ensures that unauthorized individuals do not gain access to the software and potentially compromise the system or data. The franchisee is also prohibited from copying, reverse-engineering, or allowing other parties to copy or reverse-engineer the software.
The franchisee is responsible for taking appropriate action with its employees and other parties to ensure non-disclosure of the software. The franchisee recognizes that the COOL BINZ Software is Cool Binz's copyrighted property, represents a large investment, is a trade secret, and is confidential information. The franchisee must keep the software and all related materials confidential and use its best efforts to preserve Cool Binz's proprietary rights.