What is the 'Development Schedule' for Cinch I.T. multi-unit development?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
elopment Program**
In addition, for qualified franchisees who desire the right to develop multiple CINCH I.T. franchises within a designated territory (the "Development Area") and that meet certain conditions, we also offer the opportunity to enter into a Multi-Unit Development Agreement with us (the "Multi-Unit Development Agreement" or "Development Agreement"), as defined under the NASAA Multi-Unit Commentary, to develop a mutually agreed upon number of franchises
in accordance with a development schedule specified in the Multi-Unit Development Agreement (the "Development Schedule"). Our current form of Multi-Unit Development Agreement is included as Exhibit E to this Disclosure Document.
Upon establishing each additional outlet under the Development Schedule, you must deliver to us the then-current Initial Training Fee (as defined in Item 5) and you will be required to sign a copy of our then-current standard form of franchise agreement, which may differ from the current Franchise Agreement and contain terms and condition that are materially different than the form of Franchise Agreement that is attached as Exhibit D to this Disclosure Document, however, the franchise fee and royalty fee will remain the same as the first Franchise Agreement. If you fail to open and continue to operate the required number of franchises in accordance with the mutually agreed upon Development Schedule, we will have the right to terminate the Multi-Unit Development Agreement. If the Multi-Unit Development Agreement is terminated, you will lose all of your 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 which has been opened will not be terminated solely by reason of the termination of the Multi-Unit Development Agreement. Unless you sign a Multi-Unit Development Agreement, you have no obligation, nor any right, to open any additional franchises.
The Franchise Agreement for the first CINCH I.T. Franchised Business to be developed under Development Schedule must be executed and delivered at the same time you sign Multi-Unit Development Agreement.
Market Competition
The target market for services and products provided by CINCH I.T. is businesses with a minimum of 10 users in need of I.T. support.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 9–12)
What This Means (2024 FDD)
According to the 2024 Cinch I.T. Franchise Disclosure Document, Cinch I.T. offers qualified franchisees the chance to develop multiple franchise locations within a specific territory through a Multi-Unit Development Agreement. This agreement includes a 'Development Schedule,' which outlines the timeline for opening these franchise locations. The specific details of the Development Schedule are determined and agreed upon between Cinch I.T. and the franchisee. The current form of the Multi-Unit Development Agreement is included as Exhibit E to the Disclosure Document.
Upon opening each additional Cinch I.T. location under the Development Schedule, the franchisee must pay the then-current Initial Training Fee and sign Cinch I.T.'s current standard franchise agreement. It is important to note that the franchise agreement signed for subsequent locations may differ from the initial agreement, potentially containing materially different terms and conditions. However, the franchise fee and royalty fee will remain the same as the first Franchise Agreement.
Failure to adhere to the Development Schedule and open the required number of Cinch I.T. franchises can result in the termination of the Multi-Unit Development Agreement. If this occurs, the franchisee will lose the rights to develop the remaining area and forfeit the initial franchise fees paid for locations for which franchise agreements have not been signed. However, the Franchise Agreements for Franchised Businesses which have been opened will not be terminated solely by reason of the termination of the Multi-Unit Development Agreement. The Franchise Agreement for the first CINCH I.T. Franchised Business to be developed under Development Schedule must be executed and delivered at the same time you sign Multi-Unit Development Agreement.
Prospective multi-unit Cinch I.T. franchisees should carefully review Exhibit E of the Franchise Disclosure Document, which contains the current form of the Multi-Unit Development Agreement, to fully understand the terms and conditions, including the Development Schedule. They should also discuss the specifics of the Development Schedule with Cinch I.T. to ensure that the proposed timeline is feasible and aligns with their business goals and capabilities.