When does the fiscal year end for Cinch I.T.?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
The names, addresses and telephone numbers of our current franchisees, as of December 31, 2023 are listed in Exhibit J to this Disclosure Document. This list includes any franchisees who signed a franchise agreement prior to our last fiscal year end but had not opened their CINCH I.T. franchise as of that date.
Also listed in Exhibit J is the name, city and state, and current business telephone number, or if unknown the last known home telephone number, of the franchises that were transferred, terminated, canceled, not renewed, or otherwise voluntarily or involuntarily ceased to do business with us during the most recently completed fiscal year or have not communicated with us within 10 weeks preceding the date of this Disclosure Document. If you buy this franchise, your contact information may be disclosed to other buyers when you leave the franchise system.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 60)
What This Means (2024 FDD)
According to the 2024 Cinch I.T. Franchise Disclosure Document, the company's fiscal year ends on December 31st. This is explicitly stated in Item 20, which references franchisee information as of December 31, 2023. This date is relevant for determining which franchisees are included in the lists of current and former franchisees within the FDD.
For a potential franchisee, understanding the franchisor's fiscal year-end is important for several reasons. It helps in interpreting the financial statements provided in the FDD, as these statements reflect the company's performance over the fiscal year. Knowing the fiscal year-end allows a franchisee to align their own financial planning and reporting with that of Cinch I.T.
Additionally, the fiscal year-end is often used as a reference point for various reporting requirements and deadlines within the franchise system. For example, franchisees may be required to submit financial reports or other information to the franchisor on a schedule that is tied to the fiscal year. In the case of Cinch I.T., the franchisee list in Exhibit J is compiled as of the fiscal year-end, which could be relevant for networking and due diligence purposes.
Finally, the related party transactions in Item 23 also reference the years ended December 31, 2022 and 2021, further reinforcing that Cinch I.T. operates on a calendar fiscal year.