Besides Cinch I.T. itself, who else can be designated as an approved supplier?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
s only in accordance with our specifications and standards.
We have the right to restrict the availability of branded and proprietary products and other client services related products and technologies as well as other current and future products, supplies, or services to: (a) us; (b) one of our affiliates; or (c) one or more third party suppliers that we have designated or approved. Use or sale of any substitute product or service for the proprietary products and services is strictly prohibited.
Purchases from Us or Our Affiliate
Currently, we and/or our affiliate are the only approved supplier of the proprietary CINCH I.T. products and services as well as other products and services. We and/or our affiliate are the exclusive vendor for all CINCH I.T. trademarked and branded products, Marketing Starter Package, and other CINCH I.T. marketing and promotional materials. Except in specific instances detailed in our Operations Manual, you are required to purchase all technology, software and hardware for your use and client resale at cost directly from us or our affiliates. Our affiliate, Cinch HD is the exclusive vendor of all client support through its Helpdesk services.
We and/or our affiliate earn revenue on your purchase of products and services. As of December 2023, our affiliate Cinch HD LLC earned $5,072,783 from required franchisee leases and purchases, which represented 100% of its revenue.
Except as described above, currently you are not required to purchase any other products or services from us or our affiliates.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 22–26)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, the company can designate itself, its affiliates, or one or more third-party suppliers as approved suppliers. Cinch I.T. may restrict the availability of branded and proprietary products, client services, related products, technologies, and other current and future products, supplies, or services to these entities.
Currently, Cinch I.T. and/or its affiliate are the only approved suppliers of the proprietary Cinch I.T. products and services, trademarked and branded products, the Marketing Starter Package, and other marketing and promotional materials. Unless otherwise specified in the Operations Manual, franchisees must purchase all technology, software, and hardware for their use and client resale directly from Cinch I.T. or its affiliates. Cinch I.T.'s affiliate, Cinch HD, is the exclusive vendor for all client support through its Helpdesk services.
Cinch I.T. may receive revenue or other benefits, such as rebates, discounts, and allowances, from authorized or designated suppliers based on their dealings with franchisees. For example, in the fiscal year ending December 31, 2023, Cinch HD LLC received a rebate of $59,565 from a referral partner that franchisees are not required to purchase from. Cinch I.T. does not have to disclose the criteria for supplier approval to franchisees.