What is the sole liability of Cool Binz Franchisor regarding program errors?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
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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
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 o
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, the franchisor's sole liability regarding the COOL BINZ software is to correct program errors in the software itself. This means Cool Binz is only responsible for fixing bugs or defects within the software code.
Cool Binz is not responsible for issues arising from other sources. Specifically, the franchisor is not liable for problems caused by the hardware on which the software operates, interactions with non-standard software, or any incorrect handling or use of the software by the franchisee. This allocation of responsibility means that franchisees must ensure their hardware is compatible, avoid using unauthorized software alongside the COOL BINZ software, and properly train their staff to use the software correctly.
This limitation of liability is a standard practice in franchising, where franchisors often provide software but cannot control every aspect of the franchisee's technology environment or user behavior. Franchisees bear the risk of ensuring their own systems and practices do not cause software malfunctions outside of the franchisor's direct control over the software code itself. The franchisee also acknowledges that the software may have certain defects when delivered.