Who administers the Marketing Fund for Cinch I.T.?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
eting Fund Fee in the amount of one and one half percent (1.5%) of the Franchised Business' Gross Sales per month, or Two Hundred Dollars ($200.00) per month, whichever is greater, in order to develop and maintain a local, regional or national Marketing program.
- (b) The Marketing Fund will be administered by Us. We, in Our sole discretion will be responsible for (i) developing and implementing advertising and marketing programs for the benefit of Our entire System; (ii) deciding which media to use and under what terms; (iii) preparing and making available to all franchisees an annual statement of income and expenses upon written request; the cost of preparing the statements will be paid by the Marketing Fund; (iv) securing the services of advertising agencies or other marketing professionals; and (v) limiting expenditures from the Marketing Fund, to the extent possible, to those areas in which franchisees are contributing to the Marketing Fund. Funds not spent in any given fiscal year will be carried forward to the next year. We reserve the right to place additional local, regional or national advertising at Our expense. All Franchisor-owned units or affiliate-owned units, operating under the CINCH I.T. Mark, will contribute to the Marketing Fund on the same basis as franchised units. A portion of the total Marketing Fund may be used annually to reimburse Us or Our designees for advertising and marketing-related administrative costs, indirect expenses and subsidizing costs. As the CINCH I.T. System expands, We may establish an advertising council.
- (c) We will maintain separate bookkeeping accounts for the Marketing Fund and may, but will not be required to cause Marketing Fund contributions to be deposited into one or more separate bank accounts. The Marketing Fund is not a trust, and We are not a fiduciary or trustee of the Marketing Fund or the monies in the Marketing Fund. However, We may, in Our discretion, separately incorporate the Marketing Fund or create a Marketing Fund trust, over which We may be the trustee, into which Marketing Fund contributions may be deposited.
- (d) Irrespective of the development or implementation of any local, regional or national advertising or marketing program by Us, after Your CINCH
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to the 2024 Cinch I.T. Franchise Disclosure Document, the Marketing Fund is administered by Cinch I.T. itself, referred to as "Us" in the document. Cinch I.T. has the authority to develop and implement advertising and marketing programs for the benefit of the entire Cinch I.T. system. This includes deciding which media to use, preparing annual statements of income and expenses for franchisees upon written request, securing advertising agencies, and limiting expenditures to areas where franchisees contribute to the fund.
Funds that are not spent in a given fiscal year will be carried forward to the next year, and Cinch I.T. reserves the right to place additional advertising at its own expense. All franchisor-owned or affiliate-owned units contribute to the Marketing Fund on the same basis as franchised units. A portion of the Marketing Fund may be used to reimburse Cinch I.T. or its designees for advertising and marketing-related administrative costs and indirect expenses.
Cinch I.T. maintains separate bookkeeping accounts for the Marketing Fund and may deposit contributions into separate bank accounts. The Marketing Fund is not a trust, and Cinch I.T. is not a fiduciary or trustee of the fund. However, Cinch I.T. may incorporate the Marketing Fund or create a Marketing Fund trust, over which it may be the trustee. Franchisees are also required to spend a minimum of $1,000 per month on franchisor-directed local advertising and marketing programs after their Cinch I.T. franchised business has been in operation for one month.