When are the costs and attorneys' fees due to Cinch I.T.?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
| TYPE OF FEE1 | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| Costs & Attorneys' | Cost of collection and | As incurred | have different terms or |
| conditions, must be | |||
| signed by you and us. | |||
| You may be required to | |||
| attend training classes. | |||
| Payable upon your | |||
| Fees | attorneys' fees | failure to comply with | |
| the Franchise | |||
| Agreement. | |||
| Indemnification | Cost of liability | As incurred | You must indemnify |
| and hold us harmless | |||
| against any claims, | |||
| losses, costs, expenses, | |||
| liabilities and damages, | |||
| including costs and | |||
| attorneys' fees arising | |||
| from the operation of | |||
| your Franchised | |||
| Business. |
Source: Item 6 — OTHER FEES (FDD pages 14–20)
What This Means (2024 FDD)
According to the 2024 Cinch I.T. Franchise Disclosure Document, costs and attorneys' fees are due as incurred in two specific instances: for collection efforts and for indemnification.
First, Cinch I.T. franchisees are responsible for covering the costs of collection and attorneys' fees that Cinch I.T. incurs if the franchisee fails to comply with the Franchise Agreement. These costs are due as they are incurred. This means that if Cinch I.T. has to take legal action to enforce the agreement, the franchisee will be responsible for those legal expenses.
Second, franchisees must indemnify Cinch I.T. against any claims, losses, costs, expenses, liabilities, and damages, including costs and attorneys' fees, arising from the operation of their franchised business. These indemnification costs, including legal fees, are also due as incurred. This means a franchisee could be responsible for Cinch I.T.'s legal costs if a customer sues the franchisee and Cinch I.T. is also named in the suit.