In the Cinch I.T. franchise agreement, which section covers the franchisee's payment obligations?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
u understand and acknowledge that We shall have the sole right to approve or deny the proposed franchisee entity as a substitute for the Multi-Unit Developer as the Franchisee. With respect to each CINCH I.T. Franchised Business to be developed under this Agreement, You may locate the business office of the Franchised Business pursuant to the terms of each Franchise Agreement. It is the express intent of the Parties hereto to limit Our responsibility under this Section to general guidance and assistance as We may periodically provide in Our operations manual ("Operations Manual").
- 4.2 You shall pay to Us an initial franchise fee ("Initial Franchise Fee") of Fifteen Thousand Dollars ($15,000.00) for the first CINCH I.T. Franchise Agreement and a development fee ("Development Fee") of _________ Dollars ($___________) for each additional CINCH I.T. Franchised Business to be developed under this Agreement. The Initial Franchise Fee and Development Fee are due in full upon the execution of this Agreement. All amounts collected shall be deemed fully earned immediately upon receipt and shall be non-refundable, regardless of whether You open any of the CINCH I.T. Franchised Businesses You are obligated to open in the Development Area. We will credit each Development Fee paid as full payment of the initial franchise fee due for each subsequent franchise to be opened under this Agreement.
- 4.3 You shall pay to Us an initial training fee ("Initial Training Fee") of Thirty Thousand Dollars ($30,000.00) when You sign Your first CINCH I.T. Franchise Agreement. The then-current Initial Training Fee for the second CINCH I.T. Franchised Business to be developed under this Agreement will be reduced twenty five percent (25%). Thereafter, for the third and each subsequent CINCH I.T.
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Multi-Unit Development Agreement, Section 4 outlines the franchisee's payment obligations. This section specifies the initial franchise fee, development fee, and initial training fee associated with opening Cinch I.T. franchises.
Specifically, the initial franchise fee for the first Cinch I.T. franchise is $15,000.00. Additionally, a development fee is required for each subsequent Cinch I.T. franchise to be developed under the agreement, with the amount to be determined. Both the initial franchise fee and the development fee are due upon the execution of the agreement and are considered fully earned and non-refundable upon receipt.
Furthermore, an initial training fee of $30,000.00 is required when signing the first Cinch I.T. Franchise Agreement. The initial training fee is reduced by 25% for the second Cinch I.T. Franchised Business and by 50% for the third and each subsequent Cinch I.T. Franchised Business. Each initial training fee must be paid in a lump sum when each Franchise Agreement is signed. This section clarifies the financial commitments a franchisee must make to Cinch I.T. and the schedule for these payments.