What is the definition of 'Projected Opening Dates' for a Cinch I.T. Franchised Business?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
r any of Your other development obligations. If an extension is requested in the final Development Period, the term of this Agreement shall be extended to the Extension Date, and thereafter You shall have no further rights under this Agreement. Each extension may be conditioned upon payment of an extension fee ("Extension Fee") of Five Thousand Dollars ($5,000.00) per extension.
- (ii) You shall notify Us in writing at least thirty (30) days prior to the Projected Opening Date (defined below) for a CINCH I.T. Franchised Business if You will be unable to commence operation of the CINCH I.T. Franchised Business by the expiration date of the Development Period in which such CINCH I.T. Franchised Business was to have been opened. In such notice You shall request that We consider Your request for an extension and shall include a description of the reasons for Your failure to develop the CINCH I.T. Franchised Business in a timely manner and the expected date of opening, if the extension were to be granted, along with payment of the Extension Fee if required.
- (e) Failure by You to adhere to the Development Schedule (including any extensions approved by Franchisor) shall constitute a material event of default under this Agreement.
- 5.3 You acknowledge that the projected opening dates ("Projected Opening Dates") for each CINCH I.T. Franchised Business set forth on Addendum B are reasonable and consistent with the requirements of the Development Schedule.
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, the 'Projected Opening Dates' are the anticipated dates for opening each Cinch I.T. Franchised Business, as outlined in Addendum B of the agreement. These dates are considered reasonable and consistent with the requirements of the Development Schedule.
For a multi-unit developer, these projected opening dates are crucial as they dictate the timeline for establishing and operating multiple Cinch I.T. locations. The franchisee must notify Cinch I.T. in writing at least 30 days before the projected opening date if they anticipate being unable to meet the deadline. Failure to adhere to the Development Schedule, including the projected opening dates, can result in a default under the agreement.
Furthermore, the franchisee must execute a Franchise Agreement for each Cinch I.T. Franchised Business at or before the execution deadline, which is set no later than six months prior to the projected opening date. This timeline ensures that all necessary agreements and preparations are in place well in advance of the anticipated launch of each location. Extensions to the development period, and therefore the opening date, may be granted by Cinch I.T., potentially subject to an extension fee of $5,000 per extension.