factual

Must a Cinch I.T. franchisee comply with all of Cinch I.T.'s policies regarding advertising and promotion?

Cinch_I_T Franchise · 2024 FDD

Answer from 2024 FDD Document

[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING]

You may develop your own marketing and promotional materials provided they are submitted to us in advance for review and approval. You must obtain our prior written approval of all advertising, marketing and promotional materials that you desire to use at least 30 days before the implementation of such plans, unless such materials have been previously approved by us. You may not use such materials until they have been approved by us in writing and will promptly discontinue use of any advertising, marketing or promotional materials upon our request. Any materials submitted by you to us that have not been approved or disapproved, in writing, within 15 days of our receipt will be deemed disapproved. (Franchise Agreement - Section 21)

You agree that upon transfer, termination or expiration of this Agreement, you will immediately remove all advertising that you control and notify all advertising sources that your advertising must be removed and/or canceled immediately. For advertising that cannot be immediately canceled, you are responsible for any and all costs related to such advertising until such time as it

can be canceled or it expires. (Franchise Agreement - Section 21)

We currently do not have an advertising council composed of franchisees to advise us on our advertising policies. We may decide to implement an advertising council in the future.

We currently do not have any advertising cooperatives and have no plans to form such cooperatives in the immediate future. However, you must join and actively participate in any organizations or associations of franchisees or advertising cooperatives that we establish or that are established at our direction for the purpose of promoting, coordinating, and purchasing advertising in local, regional, or national areas where there are multiple CINCH I.T. businesses.

You may request a local area code telephone number for your CINCH I.T. business, which will be routed to us or our affiliate. We will own all rights to the telephone listing. You will be solely responsible for all costs related to this telephone number.

Computer System

While the components of our hardware and software are widely available, the technology system includes components that are proprietary.

To run your business you are required to have the following hardware:


[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING]

We have the right to remotely access all your computer information and records to monitor your productivity and we have no contractual limitations on our ability to do so. (Franchise Agreement - Section 10)

Internet/e-commerce

We restrict, designate, and have the right to approve, or control all of your electronic media, including Internet activities, and e-mail marketing correspondence, digital content, and electronic communications if any. This includes any websites and all Social Networking and Marketing activities, including Twitter, Facebook, Foursquare, LinkedIn or any social media outlets. This also includes any group or social buying platforms, promotions or campaigns. You must follow the most recent rules and regulations published in our Operations Manuals or other manuals we have created regarding the upkeep and communications sent out via these channels.

You are not permitted to establish a website on the Internet using any domain name containing the words CINCHIT.com, .net, .biz, .org or any other top level domain or variation thereof. We maintain the cinchit.com Internet Website and provide you with access to our Website and include your location information. We may require that you utilize e-commerce products or services designated by us.

Any digital or electronic content published must be within brand communication standards and is subject to our approval. All digital imagery bearing our Marks is subject to our approval. We have the final decision concerning all information and functionality that appears on the CINCH I.T. Internet Website and will update or modify the CINCH I.T. Internet Website according to a schedule that we determine. By posting or submitting to us information or materials for the Internet Website, you are representing to us that the information and materials are accurate and not misleading and do not infringe upon any third party's rights. You must notify us whenever any information about you or the Franchise Business on the CINCH I.T. Internet Website changes or is not accurate.

Due to the speed of electronic communication, all instructions by us which are deemed to restrict, designate or control e-commerce activities must be responded to within 24 hours.

[Item 23: RECEIPTS]

Franchised Business has been in operation for one (1) month, You are required to spend a minimum of One Thousand Dollars ($1,000.00) per month on Franchisor directed local advertising and marketing programs for the remaining term of Your Franchise Agreement.

We will provide You with copies of Our available marketing and advertising material, if You desire, at no cost via Our Intranet.

In addition, You

may do Your own advertising and marketing, or hire an agency, but in either event, You must obtain Our prior written approval of all advertising and marketing materials that You desire to use at least thirty (30) days before the implementation of such advertising and marketing, unless such materials have been previously approved by Us. You shall submit such materials to Us by personal delivery or through the mail, "Return Receipt Requested" or sent by overnight delivery paid for by sender. You shall not use such materials until they have been approved by Us in writing and shall promptly discontinue use of any advertising or promotional materials upon Our request. Any materials submitted by You to Us that have not been approved or disapproved, in writing, within fifteen (15) days of receipt thereof by Us, shall be deemed disapproved.

  • (e) You agree to conduct a Grand Opening Marketing and Promotional Program for the CINCH I.T.

Franchised Business at the time and in the manner specified by Us and agree to spend a minimum of Four Thousand Dollars ($4,000.00) for the grand opening program.

You agree to provide Us with a summary of the grand opening program expenditures within sixty (60) days after the CINCH I.T.

Franchised Business opens.

Your grand opening program must utilize the marketing and advertising materials that We have either developed or approved.

  • (f) Except when advertising cooperatively with other franchisees or with Us, You are prohibited from advertising or marketing Your Franchised Business outside Your Designated Territory.

Unless granted specific written permission to the contrary, Your 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 Your Designated Territory.

[Item 23: RECEIPTS]

Unless granted specific written permission to the contrary, Your 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 Your Designated Territory.

If Your Designated Territory lies within an Area of Dominant Influence (ADI)/ or Designated Market Area (DMA) of media sources located outside of Your Designated Territory, and if other franchisee- or Franchisor- or affiliateowned units lie within the same ADI, then We reserve the right to require You and other franchisees to cooperate and participate in advertising through that media source on a cooperative basis.

  • (g) We reserve the right to require You to cooperate and participate in certain special promotional events or campaigns that may from time to time be sponsored by Us, other franchisees, or both.

  • (h) Immediately upon notification, You shall discontinue any advertising, marketing or promotional programs that would, in Our sole opinion, be detrimental to the CINCH I.T.

System, Marks, Us, Our affiliates or other franchisees.

You agree that upon termination, transfer, or expiration of this Agreement, You shall immediately remove all advertising that You control and notify all advertising sources that Your advertising must be removed and/or canceled immediately.

For advertising that cannot be immediately canceled, You are responsible for any and all costs related to such advertising until such time as it can be canceled or it expires.

  • (i) We have the power to require Advertising Cooperatives to be formed, changed, dissolved or merged.

If an Advertising Cooperative is established, We may designate a geographic area in which three or more Franchised Businesses are located as an area in which to establish an Advertising Cooperative.

The Advertising Cooperative's members will include all CINCH I.T.

Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 47–48)

What This Means (2024 FDD)

According to Cinch I.T.'s 2024 Franchise Disclosure Document, franchisees must adhere to Cinch I.T.'s advertising and marketing policies. Franchisees can develop their own marketing materials, but these must be submitted to Cinch I.T. for prior written approval at least 30 days before use, unless the materials have been previously approved. Any materials not approved or disapproved within 15 days of receipt are deemed disapproved, and franchisees must stop using any materials upon request. Upon termination or transfer of the agreement, franchisees must immediately remove all advertising they control.

Cinch I.T. also restricts and controls all electronic media, including internet activities, email marketing, digital content, and electronic communications. Franchisees must follow the rules and regulations published in the Operations Manuals regarding upkeep and communications sent via these channels. Franchisees cannot establish a website using domain names containing "CINCHIT" with various extensions without permission.

Furthermore, franchisees are required to spend a minimum of $1,000 per month on franchisor-directed local advertising and marketing programs after the first month of operation. They must also conduct a Grand Opening Marketing and Promotional Program, spending a minimum of $4,000, using approved materials. Unless specific permission is granted, local advertising is limited to the franchisee's designated territory, utilizing approved social media, direct marketing, and other specified methods. Cinch I.T. reserves the right to require franchisees to cooperate in special promotional events and can discontinue any advertising deemed detrimental to the Cinch I.T. system.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.