What addendum specifies the Development Schedule for Cinch I.T. franchises?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
. You acknowledge that the then-current form of Franchise Agreement may differ from Our current Franchise Agreement, and may include materially different economic terms, including, but not limited to, higher training fees and marketing fund contributions, however, the franchise fee and royalty fee will remain the same as the first Franchise Agreement.
5.2 Development Schedule.
- (a) Acknowledging that time is of the essence, You agree to exercise Your development rights according to Section 5.1 and according to the Development Schedule set forth on Addendum B, which schedule designates the number of CINCH I.T. Franchised Businesses in the Development Area to be established and in operation by You upon the expiration of each of the designated development periods ("Development Periods").
- (b) During any Development Period, You may, with Our prior written consent, develop more than the number of CINCH I.T. Franchised Businesses that You are required to develop during that Development Period. Any CINCH I.T. Franchised Businesses developed during a Development Period in excess of the minimum number of CINCH I.T. Franchised Businesses required to be developed upon expiration of that Development Period shall be applied to satisfy Your development obligation during the next succeeding Development Period. You shall not open more than the number of CINCH I.T. Franchised Businesses You are obligated to develop under this Agreement, as set forth in the Development Schedule; provided, however, that You may be permitted to open CINCH I.T. Franchised Businesses in excess of the number permitted by the Development Schedule if You receive Our advanced written permission, which may be granted or denied in Our sole discretion. You shall pay Us the then-current Initial Franchise Fee and the then-current Initial Training Fee, reduced as applicable, at the time You sign a Franchise Agreement for any additional CINCH I.T. Franchised Businesses.
- (c) If during the term of this Agreement, You, in accordance with the terms of any Franchise Agreement for a CINCH I.T. Franchised Business developed under this Agreement, transfer Your interest in such CINCH I.T. Franchised Business, the transferred CINCH I.T.
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, the Development Schedule, which outlines the number of Cinch I.T. Franchised Businesses a franchisee must establish and operate within specified development periods, is detailed in Addendum B. This schedule is a crucial part of the Development Agreement, and franchisees are expected to adhere to it.
The Development Agreement requires franchisees to exercise their development rights according to Section 5.1 and the Development Schedule in Addendum B. Franchisees can develop more Cinch I.T. Franchised Businesses than required during a development period with prior written consent from Cinch I.T., and these additional businesses can count towards the next development period's obligations. However, franchisees cannot exceed the number of Cinch I.T. Franchised Businesses they are obligated to develop without advanced written permission from Cinch I.T.
Failure to adhere to the Development Schedule, including any approved extensions, constitutes a material event of default under the Development Agreement. Franchisees must also notify Cinch I.T. in writing at least 30 days before the projected opening date if they cannot commence operation by the expiration date of the development period, and they may request an extension, potentially with an Extension Fee of $5,000 per extension. The projected opening dates for each Cinch I.T. Franchised Business are also set forth on Addendum B.