Are all fees payable to Cinch I.T. or their designee?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
would have paid for the remainder 5 of the term. |
NOTES:
- (1) All fees are uniformly imposed by and payable only to us or our designee and are payable through Electronic Funds Transfer. Maximum interest permitted in California is 10% annually. You must authorize your bank to accept automatic withdrawals for all fees to us through EFT of the stated amount from your bank into our bank account when due. You must provide us with all documents necessary to direct your bank to honor these pre-authorized bank debits. (See Franchise Agreement, EFT Authorization). All fees are non-refundable.
- (2) The term "Gross Sales" will mean and include the total of all revenue and income from the sale of services and products to clients of the Franchised Business or any other source, whether or not sold or performed at or from the Franchised Business and whether received in cash, in services in kind, from barter and/or exchange, on credit (whether or not payment is received), or otherwise. You will deduct from your Gross Sales (but only if they have been included) the amount of all sales tax receipts or similar tax receipts which, by law, are chargeable to clients, if the taxes are separately stated when the client is charged and if the taxes are paid to the appropriate taxing authority. You will also deduct from your Gross Sales the amount of any documented refunds, charge backs, credits and allowances which you give in good faith to clients. All barter and/or exchange transactions to which Franchised Business furnishes services and/or products in exchange for goods or services to be provided to Franchised Business by a
vendor, supplier or client will, for the purpose of determining Gross Sales, be valued at the full value of the goods and/or services so provided to Franchised Business.
(3) Royalty Fees and Marketing Fund Fees will be calculated based on the Franchised Business' monthly Gross Sales and begin from the date the Franchised Business is opened and continue through the term of the Franchise Agreement.
Royalty Fee Calculations are as follows:
You will pay a monthly royalty based on the following percentages as they relate to "Monthly Gross Sales":
- a) 7% of Gross Sales from the preceding month where the Monthly Gross Sales as of the end of the preceding month are less than $83,333.34.
- b) 6% of Gross Sales revenue from the preceding month where the Monthly Gross Sales as of the end of the preceding month is from $83,333.35 to $166,666.67.
- c) 5% of Gross Sales revenue from the preceding month where the Monthly Gross Sales as of the end of the preceding month is greater than $166,666.67.
Source: Item 6 — OTHER FEES (FDD pages 14–20)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, all fees are uniformly imposed and payable to Cinch I.T. or their designee. Payments are to be made through Electronic Funds Transfer (EFT). The franchisee must authorize their bank to accept automatic withdrawals for all fees. They also must provide all necessary documents to direct their bank to honor these pre-authorized bank debits. All fees are non-refundable.
One specific fee, the Helpdesk Client Managed Services Fees, are explicitly stated as payable to Cinch I.T. or their designee, Cinch HD. These fees range from $5 to $90 monthly, depending on the service provided, the number of users, and the equipment supported. These fees are due on the 15th of each month, or another date designated by Cinch I.T., via EFT. Cinch I.T. retains the right to adjust this fee with 90 days written notice based on changes in circumstances, such as increased costs from a vendor or third party.
Franchisees should be aware of the mandatory EFT payment system and the potential for adjustments to the Helpdesk Client Managed Services Fees. It is also important to note that all fees are non-refundable, so franchisees should carefully consider their ability to meet these financial obligations. Prospective franchisees should inquire about the typical frequency and magnitude of adjustments to the Helpdesk Client Managed Services Fees to better understand potential cost fluctuations.