What is the amount of the Initial Franchise Fee for a Cinch I.T. franchise?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchised Business to be developed under this Agreement, You may locate the business office of the Franchised Business pursuant to the terms of each Franchise Agreement. It is the express intent of the Parties hereto to limit Our responsibility under this Section to general guidance and assistance as We may periodically provide in Our operations manual ("Operations Manual").
- 4.2 You shall pay to Us an initial franchise fee ("Initial Franchise Fee") of Fifteen Thousand Dollars ($15,000.00) for the first CINCH I.T. Franchise Agreement and a development fee ("Development Fee") of _________ Dollars ($___________) for each additional CINCH I.T. Franchised Business to be developed under this Agreement. The Initial Franchise Fee and Development Fee are due in full upon the execution of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to the 2024 Cinch I.T. Franchise Disclosure Document, the initial franchise fee is $15,000. This fee is for the first Cinch I.T. franchise agreement. The FDD states that the initial franchise fee is due in full upon the execution of the agreement.
For those developing multiple Cinch I.T. franchised businesses under a development agreement, a development fee is required for each additional franchise. However, the development fee paid will be credited as full payment of the initial franchise fee for each subsequent franchise opened under the agreement.
The initial franchise fee is non-refundable and is considered fully earned by Cinch I.T. at the time the franchise agreement is executed. This is a common practice in franchising, as the fee compensates the franchisor for the initial costs of granting the franchise and providing initial support.