Where can I find the current 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 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 9–12)
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 to the Disclosure Document. 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, and who meet certain conditions.
The Multi-Unit Development Agreement outlines a mutually agreed-upon number of franchises to be developed according to a development schedule. The Franchise Agreement for the first Cinch I.T. Franchised Business must be executed at the same time the Multi-Unit Development Agreement is signed.
It is important to note that upon establishing each additional outlet under the Development Schedule, the franchisee must deliver the then-current Initial Training Fee and sign a copy of the 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 the franchisee fails to open and operate the required number of franchises according to the agreed schedule, Cinch I.T. has the right to terminate the Multi-Unit Development Agreement, resulting in the loss of development rights and initial franchise fees for franchises without signed agreements. However, existing Franchise Agreements for opened Franchised Businesses will not be terminated solely due to the termination of the Multi-Unit Development Agreement. Without signing a Multi-Unit Development Agreement, franchisees have no obligation or right to open additional franchises.