What exhibit contains the form of the Cinch I.T. Multi-Unit Development Agreement?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 60)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, the current form of the Multi-Unit Development Agreement is included as Exhibit E. This agreement is offered to qualified franchisees who want to develop multiple Cinch I.T. franchises within a specific territory, known as the Development Area.
The Multi-Unit Development Agreement outlines a development schedule that both Cinch I.T. and the franchisee must agree upon. This schedule dictates the timeline for opening new franchise locations within the Development Area. The Franchise Agreement for the first Cinch I.T. Franchised Business must be executed when signing the Multi-Unit Development Agreement.
If a franchisee fails to meet the agreed-upon development schedule, Cinch I.T. has the right to terminate the Multi-Unit Development Agreement. Should this termination occur, the franchisee would lose all rights to develop the Development Area and forfeit any initial franchise fees paid for locations for which franchise agreements have not been signed. However, existing Franchise Agreements for already-opened locations will not be terminated solely due to the termination of the Multi-Unit Development Agreement. Unless a franchisee signs a Multi-Unit Development Agreement, they have no obligation or right to open additional Cinch I.T. franchises.