What is the cost for each accountability conference during the Cinch I.T. performance improvement plan?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
If you do not sell one new managed service provider ("Managed Service Provider" or "MSP") contract for 3 consecutive months, we will require you to undertake and complete a performance improvement plan ("Plan") over a consecutive 3 month period. The Performance Improvement Plan consists of a list of activity metrics assigned by us that must be performed by you each week. You must also attend a weekly accountability telephone conference to review the assigned metrics and your results. You will be charged in one hour increments at our then-current rate for remedial training for each accountability conference. If after completion of the Plan you do not sell one new MSP contract within 3 months, you will be in default of your Franchise Agreement and we may we may terminate the Franchise Agreement.
Source: Item 12 — TERRITORY (FDD pages 39–43)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, if a franchisee fails to secure a new Managed Service Provider (MSP) contract for three consecutive months, Cinch I.T. mandates participation in a performance improvement plan. This plan spans three months and involves weekly accountability telephone conferences to assess progress against assigned activity metrics.
The 2024 FDD states that Cinch I.T. franchisees will incur charges for these accountability conferences. These charges are calculated in one-hour increments at Cinch I.T.'s then-current rate for remedial training. This implies that the cost can vary over time as Cinch I.T. adjusts its remedial training rates.
This policy has significant financial implications for franchisees. If a franchisee struggles to meet sales targets, they not only face the pressure of improving performance but also the added expense of mandatory training. Furthermore, failure to secure a new MSP contract within three months after completing the performance improvement plan can result in default of the Franchise Agreement and potential termination by Cinch I.T.