What is the Development Fee for a Cinch I.T. Multi-Unit Development Agreement?

According to Cinch I.T.'s 2024 Franchise Disclosure Document, if a franchisee enters into a Multi-Unit Development Agreement, they must pay a development fee. This fee is equal to the sum of the initial franchise fee due for each Cinch I.T. Franchised Business that the franchisee agrees to develop. This "Development Fee" is credited towards the initial Franchise Fee for each Cinch I.T. Franchised Business developed under the Development Agreement. The franchise fee is $15,000 per location. Therefore, if a franchisee commits to developing three locations, the Development Fee would be $45,000.

The Development Fee must be paid in a lump sum when the Development Agreement is signed and is non-refundable. The Franchise Agreement for the first Cinch I.T. Franchised Business to be developed under the Development Schedule must be executed and delivered at the same time the Multi-Unit Development Agreement is signed.

It's important to note that if the franchisee fails to open and continue to operate the required number of franchises according to the mutually agreed-upon Development Schedule, Cinch I.T. has the right to terminate the Multi-Unit Development Agreement. If this happens, the franchisee will lose all rights to develop the Development Area and the initial franchise fees paid for any franchises for which franchise agreements have not been signed. However, the Franchise Agreement for each Franchised Business that has been opened will not be terminated solely because of the termination of the Multi-Unit Development Agreement.