Does Cinch I.T. currently derive revenue from franchisee purchases of the Computer System?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
You must use the computer software and hardware components and accessories as further
detailed in Items 7 and 11 ("Computer System") that we require. We have the right to designate a single supplier for the Computer System. We have the right to appoint additional suppliers or different suppliers for the Computer System. We may require you to maintain service support contracts and/or maintenance service contracts and implement and periodically make upgrades and changes to the computer hardware and software, and credit card, debit card and other noncash payment systems. We may designate the vendor(s) for these support service contracts and maintenance service contracts.
Neither we nor our affiliates currently derive revenue from your purchase of the Computer System; however, we are permitted and may do so in the future.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 22–26)
What This Means (2024 FDD)
According to the 2024 Cinch I.T. Franchise Disclosure Document, Cinch I.T. does not currently derive revenue from franchisee purchases of the Computer System. However, Cinch I.T. retains the right to do so in the future. The Computer System includes the computer software and hardware components and accessories that Cinch I.T. requires franchisees to use.
Cinch I.T. has the right to designate a single supplier or appoint additional or different suppliers for the Computer System. Cinch I.T. may also require franchisees to maintain service support contracts and/or maintenance service contracts and implement and periodically make upgrades and changes to the computer hardware and software, and credit card, debit card and other noncash payment systems. Cinch I.T. may designate the vendors for these support service contracts and maintenance service contracts.
Prospective franchisees should be aware that while Cinch I.T. does not currently profit from the sale of the Computer System, this could change. Franchisees are required to use the specific computer systems that Cinch I.T. mandates and may be required to use specific vendors for support and maintenance. This gives Cinch I.T. significant control over this aspect of the business and the potential to generate revenue from it in the future.