What conditions must a Cinch I.T. franchisee meet to renew their franchise agreement?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise or other agreement | Summary |
|---|---|---|
| a. Length of the franchise | Section 5 | Term is 5 years. |
| term | ||
| b. Renewal or extension of the term | Section 6 | If you are in good standing, you can renew for 3 successive 5 year terms. |
| c. Requirements for franchisee to renew or extend | Section 6 | Give timely notice, not in default, has not received 3 or more default notices in prior term, sign new agreement which may have materially different terms and |
| conditions | ||
| than your original | ||
| Franchise Agreement, | ||
| including territory and | ||
| royalty, sign release, | ||
| refresher training if required | ||
| by us, renewal fee equal to | ||
| $5,000. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 48–56)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, a franchisee can renew their franchise agreement for three successive 5-year terms if they are in good standing. To renew the agreement, the franchisee must provide timely notice, not be in default, and must not have received three or more default notices during the prior term.
Additionally, the franchisee will need to sign a new agreement, which may contain significantly different terms and conditions compared to the original franchise agreement. These changes could include modifications to the territory and royalty fees.
Furthermore, the franchisee must sign a release, attend refresher training if required by Cinch I.T., and pay a renewal fee of $5,000. Meeting these conditions ensures the franchisee can continue operating under the Cinch I.T. brand for additional terms.