Does the Cinch I.T. Disclosure Document include a form of Non-Competition Agreement?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
f which you may be apprised by virtue of your operation under the terms of the Franchise Agreement or the Development Agreement.
General Managers and anyone required to attend training cannot have an interest in or business relationship with any business competitive with the CINCH I.T. concept. We require your managers to sign our then-current form of Non-Disclosure, Non-Solicitation and Non-Competition Agreement; our current form is attached as Exhibit F to this Disclosure Document, subject to applicable state law. We require your employees to sign our then-current form of Confidentiality Agreement; our current form is attached as Exhibit G to this Disclosure Document.
You may compile and maintain current, former and prospective client information, for your Franchised Business, however, all client lists are our proprietary information and may only be used for the normal conduct of the Franchised Business during the term of the Franchise Agreement. You must transfer them to us on the expiration, termination, repurchase or transfer of your Franchised Business.
Source: Item 22 — CONTRACTS (FDD page 60)
What This Means (2024 FDD)
Yes, according to the 2024 Cinch I.T. Franchise Disclosure Document, the document includes a Non-Disclosure, Non-Solicitation, and Non-Competition Agreement. Cinch I.T. requires that the franchisee's general managers and anyone attending training must not have any interest in or business relationship with any business that competes with the Cinch I.T. concept.
The Non-Disclosure, Non-Solicitation, and Non-Competition Agreement is included as Exhibit F to the Disclosure Document. Cinch I.T. also requires that the franchisee's employees sign a Confidentiality Agreement, which is included as Exhibit G to the Disclosure Document. Additionally, the spouse of the franchisee must sign a Spousal Non-Disclosure and Non-Competition Agreement, which is included as Exhibit H.
Cinch I.T. also requires franchisees to ensure that any key employee involved in the Franchised Business signs a non-disclosure, non-solicitation, and non-competition agreement, unless prohibited by the laws of the state where the Franchised Business is located or where the employee works or lives. The form of this agreement must be approved by Cinch I.T.