When is the Franchise Fee for Cinch I.T. due?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
Item 5 INITIAL FEES*
Franchise Fee
The Franchise Fee is $15,000. You must pay the Franchise Fee in a lump sum when you sign the Franchise Agreement.
Initial Training Fee
You must pay us an Initial Training Fee of $30,000 in a lump sum when you sign the Franchise Agreement. The Initial Training Fee provides for one salesperson and one technician to attend the Initial Training Program.
Multi-Unit Development Fee
If you enter into a Development Agreement, you must pay us a development fee equal to the sum of the Initial Franchise Fee due for each Franchised Business that you agree to develop (the "Development Fee"). The Development Fee will be credited towards the initial Franchise Fee for each CINCH I.T. Franchised Business developed pursuant to the Development Agreement. You must pay the Development Fee in a lump sum when you sign the Development Agreement.
Source: Item 5 — INITIAL FEES (FDD pages 13–14)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, the franchise fee of $15,000 is due in a lump sum when you sign the Franchise Agreement. This fee is required to begin the process of opening a Cinch I.T. franchise. For those entering a Development Agreement for multiple franchise locations, a Development Fee is required, which is the sum of the initial franchise fee for each location. This Development Fee is also paid in a lump sum when signing the Development Agreement and is non-refundable.
For franchisees pursuing a multi-unit development, the Development Fee is credited toward the initial franchise fee for each Cinch I.T. location developed under the agreement. This means that while the initial outlay is higher, it covers the franchise fees for subsequent locations.
It's important to note that Cinch I.T. offers a veteran initiative program, providing honorably discharged veterans and their spouses a 50% discount on the then-current franchise fee. This could significantly reduce the initial investment for eligible veterans.