When is the Development Transfer Fee for a Cinch I.T. franchise due?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
H I.T. Franchised Businesses before the effective date of transfer and will continue to remain responsible for Your obligations of nondisclosure, noncompetition and indemnification as provided in the Franchise Agreements and Guaranty Agreement, attached to this Agreement as Addendum C and shall sign any and all instruments reasonably requested by Us to further evidence this liability;
- (viii) You or Your approved transferee shall pay to Us, at the time of said transfer, a transfer fee ("Development Transfer Fee") equal to Five Thousand Dollars ($5,000.00) for each unopened CINCH I.T. Franchised Business to be transferred, and Ten Thousand Dollars ($10,000.00) for each CINC
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, the Development Transfer Fee is due at the time of the transfer. The amount of the fee depends on whether the Cinch I.T. franchised business is open or unopened.
Specifically, if the Cinch I.T. franchised business is unopened, the Development Transfer Fee is $5,000.00 for each business to be transferred. If the Cinch I.T. franchised business is open and operating when you notify Cinch I.T. of your intent to transfer, the Development Transfer Fee is $10,000.00 for each business.
This fee covers Cinch I.T.'s administrative and other expenses related to the transfer of the franchised businesses. The transfer itself must comply with the terms of each individual Cinch I.T. Franchise Agreement.