What is the deadline for providing an updated Addendum D to Cinch I.T. after a change in equity ownership?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
You shall provide Us with an updated form of Addendum D within five (5) business days of any change in the equity ownership of Multi-Unit Developer.
Your failure to provide Us with an updated Addendum D within the timeframe specified in this Section 2.3 shall constitute a material default of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, if there is a change in the equity ownership of a Multi-Unit Developer, the developer must provide Cinch I.T. with an updated Addendum D within five business days of the change. Addendum D is the Principal Owner's Statement attached to the agreement.
Failure to provide the updated Addendum D within the specified timeframe constitutes a material default of the agreement. This means that not complying with this requirement could have significant legal and financial repercussions for the franchisee, potentially leading to termination of the franchise agreement.
This requirement ensures that Cinch I.T. is always aware of the current ownership structure of its franchisees, which is important for maintaining control and consistency within the franchise system. It also allows Cinch I.T. to assess whether the new equity owners meet their standards.