Can a Cinch I.T. franchisee advertise outside of their designated territory?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
and conditions of this Agreement, We may not otherwise alter Your Designated Territory, as it is defined in this Agreement, and as it is more specifically identified in Addendum A to this Agreement.
(e) You agree that You will not actively advertise or market for clients outside of Your Designated Territory without Our prior written approval. 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 from outside their designated territory which may include Your Designated Territory. In addition, with Our prior written permission, You may attend national, regional or 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.
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 business from outside of Your Territory without permission or special payment.
**5.
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, franchisees generally cannot actively advertise or market for clients outside their designated territory without prior written approval from Cinch I.T. However, franchisees are not restricted from passively attracting clients from outside their designated territory. Similarly, other franchisees are not restricted from passively attracting clients from outside their territories, which may include another franchisee's designated territory.
With prior written permission from Cinch I.T., a franchisee may attend national, regional, or extra-territorial tradeshows, meetings, and events, even in territories owned by other franchisees. However, franchisees cannot actively use telemarketing, direct marketing, or other channels of distribution to advertise outside their designated territory unless specifically authorized in the Operations Manual or in written communication from Cinch I.T.
Cinch I.T. also states that unless granted specific written permission to the contrary, a franchisee's local advertising activity is limited to approved social media, direct marketing, targeted print and broadcast media, speaking engagements, networking events, and all other types of activity designed to encourage and solicit business only within their Designated Territory. Franchisees are also prohibited from advertising or marketing their franchised business outside their Designated Territory except when advertising cooperatively with other franchisees or with Cinch I.T.