Does the Cinch I.T. agreement allow the franchisee to issue press releases about the agreement?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
- 10.2 You agree that all terms of this Agreement shall remain confidential and You shall not make any public announcement, issue any press release or publicity, make any confirmation of statements made by third (3rd) parties concerning the terms of this Agreement, or make any other disclosures other than the existence of this Agreement without Our prior written consent unless compelled by law or ordered to do so by a court of competent jurisdiction. It is agreed and understood that You may disclose the terms of this Agreement to Your professional advisors and lenders. We shall be free to make the disclosure of the terms of this Agreement as We determine, in Our sole discretion, to be in the best interest of Us or the System.
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to the 2024 Cinch I.T. Franchise Disclosure Document, franchisees are generally prohibited from making public announcements or issuing press releases concerning the terms of their Franchise Agreement.
Specifically, the agreement states that franchisees cannot make any public announcement, issue any press release or publicity, make any confirmation of statements made by third parties, or make any other disclosures regarding the agreement's terms without Cinch I.T.'s prior written consent. This restriction extends to disclosing even the existence of the agreement.
However, there are exceptions to this rule. Franchisees are permitted to disclose the terms of the agreement to their professional advisors and lenders. Additionally, Cinch I.T. reserves the right to disclose the terms of the agreement as it deems necessary, at its sole discretion, in the best interest of the company or its system. If compelled by law or ordered by a court, the franchisee may also make necessary disclosures.
This clause ensures that Cinch I.T. maintains control over how information about its franchise agreements is disseminated to the public, protecting its brand and strategic interests. Franchisees need to be aware of these restrictions and obtain written consent from Cinch I.T. before releasing any information about their franchise agreement.