What addendum describes the designated territories for Cinch I.T. franchises?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
ADDENDUM A TO FRANCHISE AGREEMENT FRANCHISEE'S DESIGNATED TERRITORY
In accordance with the provisions of Section 4 of the Franchise Agreement, Franchisee is granted a Designated Territory, hereinafter referred to as "Franchisee's Designated Territory", which encompasses approximately three thousand (3,000) to three thousand five hundred (3,500) qualifying businesses (defined as businesses with ten (10) or more employees). The population in Franchisee's Designated Territory was determined by a review of a combination of records of business establishments and employment which track population counts, and related density and demographic information.
The territory identified by the contiguous zip codes listed on the attached Exhibit A-1 is the Designated Territory in which the Franchisee shall have the right to use the Licensed Rights as set forth in the Franchise Agreement.
Dated this day of , 20 . Franchisee(s): Franchisor: CINCH FRANCHISE, LLC
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, Addendum A to the Franchise Agreement, titled "Franchisee's Designated Territory," describes the designated territories for Cinch I.T. franchises. This addendum specifies that the franchisee is granted a Designated Territory encompassing approximately 3,000 to 3,500 qualifying businesses, defined as those with ten or more employees. The business population within the Designated Territory is determined through a review of records of business establishments and employment data.
The addendum further clarifies that the Designated Territory is identified by contiguous zip codes listed on an attached exhibit. Within this territory, the franchisee has the right to use the Licensed Rights as outlined in the Franchise Agreement. This delineation of territory is a standard practice in franchising, intended to provide franchisees with a defined area of operation and to minimize direct competition between franchisees.
It is important for prospective Cinch I.T. franchisees to carefully review Addendum A and Exhibit A-1 to fully understand the geographic boundaries and business demographics of their Designated Territory. Understanding the specific zip codes included and the methodology used to determine the business population will help franchisees assess the market potential and develop targeted marketing strategies. Additionally, franchisees should be aware of any exceptions or limitations to their territorial rights as described in the Franchise Agreement.