Can a Cinch I.T. franchisee accept business from outside of their Designated Territory?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
es in another franchisee's territories, we recommend working together to provide on-site support and sharing revenue.
You may not market or advertise outside of the Designated Territory. Except for the limitations on advertising and marketing outside of your Designated Territory, you have no restrictions on who your clients are or where they come from. You may accept, service and retain business from outside of your Territory without permission or special payment.
We do not restrict you from passively attracting clients from outside your Designated Territory and likewise we do not restrict other franchisees from passively attracting clients outside their designated territory which may include your Territory.
In addition, with our prior written permission, you may attend extra-territorial tradeshows, meetings and events anywhere, including territories owned by other franchisees, however you cannot actively use telemarketing, direct marketing or other channels of distribution to advertise outside of your Designated Territory unless specifically authorized in the Operations Manual or in written communication from us.
Source: Item 12 — TERRITORY (FDD pages 39–43)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, franchisees can accept business from outside their designated territory. Cinch I.T. does not restrict franchisees from passively attracting clients from outside their Designated Territory, nor do they prevent other franchisees from passively attracting clients from outside their territories, which may include another franchisee's territory. This means a franchisee can serve clients who find them organically, regardless of location.
However, Cinch I.T. franchisees face some restrictions on actively pursuing business outside their territory. Franchisees may not market or advertise outside of their Designated Territory. The FDD specifies that active marketing efforts like telemarketing and direct marketing outside the designated territory are prohibited unless specifically authorized by Cinch I.T. in the Operations Manual or in written communication.
Despite these marketing limitations, a Cinch I.T. franchisee can attend extra-territorial tradeshows, meetings, and events with prior written permission from Cinch I.T., even in territories owned by other franchisees. If a client in a franchisee's Designated Territory has satellite offices in another franchisee's territory, Cinch I.T. recommends that the franchisees work together to provide on-site support and share revenue. This encourages collaboration among franchisees to serve clients with multiple locations.