What is the definition of the 'Initial Training Fee' for a Cinch I.T. franchise?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
ounts collected shall be deemed fully earned immediately upon receipt and shall be non-refundable, regardless of whether You open any of the CINCH I.T. Franchised Businesses You are obligated to open in the Development Area. We will credit each Development Fee paid as full payment of the initial franchise fee due for each subsequent franchise to be opened under this Agreement.
- 4.3 You shall pay to Us an initial training fee ("Initial Training Fee") of Thirty Thousand Dollars ($30,000.00) when You sign Your first CINCH I.T. Franchise Agreement. The then-current Initial Training Fee for the second CINCH I.T. Fran
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, the Initial Training Fee is defined as a fee of $30,000 that you must pay to Cinch I.T. when you sign your first Franchise Agreement. This fee covers the initial training for you and one additional person, as detailed in Sections 9 and 13 of the FDD. The Initial Training Fee is due in full upon the execution of the Franchise Agreement. This fee is non-refundable and is fully earned by Cinch I.T. at the time the parties execute the agreement.
For franchisees who develop multiple Cinch I.T. Franchised Businesses, the Initial Training Fee is reduced for subsequent franchises. The Initial Training Fee for the second Cinch I.T. Franchised Business is reduced by 25%. For the third and each subsequent Cinch I.T. Franchised Business, the Initial Training Fee is reduced by 50%. Each Initial Training Fee must be paid in a lump sum when you sign each Franchise Agreement.
The Cinch I.T. initial training program consists of remote and onsite training in Massachusetts or another designated location. The program includes instruction on Cinch I.T.'s standards, methods, procedures, and techniques. The training program is designed for the franchisee, their Operating Principal (if the franchisee is an entity), and key employees actively involved in managing or operating the Franchised Business. The Cinch University on-site Initial Training Program lasts approximately two weeks and is generally scheduled just before the Franchised Business opens. Franchisees are responsible for covering the travel, hotel, meals, and other expenses for each person attending the Initial Training Program.
It is important to note that the Franchised Business must be under the direct supervision of someone who has successfully completed the Initial Training program. Cinch I.T. also makes training available for all managers designated by the franchisee, potentially at their then-current rates. Cinch I.T. has the right to approve the franchisee's general manager based on their experience and qualifications.