Is the Development Fee refundable for a Cinch I.T. franchise?

According to the 2024 Cinch I.T. Franchise Disclosure Document, the Development Fee is not refundable. If a prospective franchisee enters into a Development Agreement with Cinch I.T., they must pay a Development Fee, which is the sum of the Initial Franchise Fee for each franchise they agree to develop. This fee is paid in a lump sum when signing the Development Agreement.

The Development Fee is credited toward the initial Franchise Fee for each Cinch I.T. franchise developed under the Development Agreement. Item 23 of the Cinch I.T. Franchise Disclosure Document states that all amounts collected are deemed fully earned immediately upon receipt and are non-refundable, regardless of whether the franchisee opens any of the Cinch I.T. Franchised Businesses they are obligated to open in the Development Area.

This non-refundable policy means that if a franchisee fails to open all the franchises outlined in the Development Agreement, they will not receive a refund of the Development Fee for the franchises that were not opened. This is a significant risk for multi-unit developers, as various factors could prevent them from fulfilling their development obligations. It is important for potential franchisees to carefully consider their ability to meet the development schedule and financial obligations before entering into a Development Agreement with Cinch I.T.