Can a Cinch I.T. franchisee change their Operating Principal without approval?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
(i) The Franchised Business must at all times be under the direct supervision of an individual
who has successfully completed the Initial Training program. You shall keep Us informed at all times of the identity of any employee(s) acting as manager(s) of the Franchised Business. You shall have a fully trained general manager operate the Franchised Business at all times when You or Your Operating Principal are not personally managing and operating the Franchised Business. We shall make training available, as is reasonable and necessary, for all managers designated by You. We may provide such training at Our then-current rates. We have the right to approve Your general manager (if not an owner) based on Our review of their relevant experience and qualifications. You must inform Us of any changes in the management or operation of Your Franchise. You agree that You will at all times faithfully, honestly and diligently perform Your obligations hereunder and that You will not engage in any business or other activities that will conflict with Your obligations hereunder or Your CINCH I.T. Franchise.
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, the franchised business must be under the direct supervision of someone who has completed the initial training program. Cinch I.T. requires franchisees to keep them informed of any employees acting as managers. If the franchisee or their Operating Principal is not personally managing the business, a fully trained general manager must be in charge.
Cinch I.T. has the right to approve the general manager if they are not an owner, based on a review of their experience and qualifications. The franchisee must inform Cinch I.T. of any changes in the management or operation of their franchise.
Therefore, while the document does not explicitly state that a franchisee needs approval to change their Operating Principal, the requirement to inform Cinch I.T. of management changes and the need for the replacement to have completed the initial training program implies that Cinch I.T. needs to be made aware of any changes to the Operating Principal.