What is the consequence of failing to comply with any of the requirements imposed by the Cinch I.T. Agreement?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
If any such default is not cured within the time as specified by Us, this Agreement shall terminate effective immediately without further notice to You.
You shall be in default under this Agreement for failure to comply with any of the requirements imposed by the Agreement, or for failure to carry out the terms of this Agreement in good faith.
Such defaults include, but are not limited to:
- (i) A failure by You to remit any payments when due under this Agreement;
(ii) A failure by You to establish, equip, maintain, or update the Franchised Business in accordance with Our plans and specifications;
(iii) A failure by You to submit to Us financial reports or other information required under this Agreement, or a failure to allow reasonable access to Your records within the time periods required by this Agreement;
(iv) A failure by You to operate the Franchised Business in accordance with Our Operations Manual or other manuals, or a failure by You to use products, methods, equipment or suppliers which conform to Our specifications and standards, or Your failure to maintain Our standards of quality service in the operation of the Franchised Business;
(v) A failure by You to obtain Our prior written approval or consent as expressly required by this Agreement;
(vi) A failure by You to accurately or completely record all sales made in, upon or from the Franchised Business at the time of sale;
(vii) A breach by You of any other covenant, term, or provision of this Agreement;
(viii) A failure by You to complete training and open the Franchised Business within six (6) months of the execution of this Agreement;
(ix) A failure by You to comply with any of Your agreements with any third parties as related to the Franchised Business;
(x) A failure by You to sell one (1) new Managed Service Provider contract within three (3) months of completing the Performance Improvement Plan; or
(xi) A failure by You to consistently pay the debts of the Franchised Business as they become due.
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, failing to comply with the requirements of the agreement or failing to carry out its terms in good faith constitutes a default. If the default is not corrected within the period specified by Cinch I.T., the agreement will terminate immediately without further notice.
Several specific failures are listed as examples of default. These include failing to make payments when due, failing to establish or update the franchised business according to Cinch I.T.'s plans, and failing to submit required financial reports or allow access to records. Additional examples of default include operating the franchised business against the operations manual, failing to use approved products or suppliers, failing to maintain quality standards, and failing to obtain prior written approval when required.
More examples of default include failing to accurately record sales, breaching any term of the agreement, failing to complete training and open the business within six months, failing to comply with agreements with third parties related to the franchised business, failing to sell a new Managed Service Provider contract after completing a Performance Improvement Plan, or failing to consistently pay debts as they become due.