What expenses does the Cinch I.T. Development Transfer Fee cover?
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 the 2024 Cinch I.T. Franchise Disclosure Document, the Development Transfer Fee covers the franchisor's administrative and other expenses related to the transfer of Cinch I.T. franchised businesses. The amount of the Development Transfer Fee depends on whether the business is open or unopened at the time of the transfer.
Specifically, the transfer fee is $5,000 for each unopened Cinch I.T. franchised business. For each Cinch I.T. franchised business that is open and operating when the franchisor is notified of the intent to transfer, the transfer fee is $10,000.
This fee is paid by the franchisee or their approved transferee at the time of the transfer. It is important for prospective franchisees to understand these transfer fees, as they can impact the financial implications of selling their franchise in the future.