When must a Cinch I.T. franchisee execute a Franchise Agreement for each Franchised Business?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
for Your failure to develop the CINCH I.T. Franchised Business in a timely manner and the expected date of opening, if the extension were to be granted, along with payment of the Extension Fee if required.
- (e) Failure by You to adhere to the Development Schedule (including any extensions approved by Franchisor) shall constitute a material event of default under this Agreement.
- 5.3 You acknowledge that the projected opening dates ("Projected Opening Dates") for each CINCH I.T. Franchised Business set forth on Addendum B are reasonable and consistent with the requirements of the Development Schedule. You shall execute a Franchise Agreement for each CINCH I.T. Franchised Business at or prior to the applicable execution deadline ("Execution Deadline") set forth on Addendum B. The Parties agree that, except with respect to the Franchise Agreement executed concurrently herewith, the Execution Deadline shall be a date no later than six (6) months prior to the Projected Opening Date for each subsequent CINCH I.T. Franchised Business to be developed.
6. FRANCHISE AGREEMENT
You shall not commence opening any CINCH I.T. Franchised Business until the individual Franchise Agreement for said CINCH I.T.
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, a franchisee must execute a Franchise Agreement for each Cinch I.T. Franchised Business at or prior to the applicable execution deadline set forth on Addendum B. Except for the initial Franchise Agreement, the execution deadline should be no later than six months prior to the Projected Opening Date for each subsequent Cinch I.T. Franchised Business to be developed.
Cinch I.T. requires that no franchisee commence opening any Cinch I.T. Franchised Business until the individual Franchise Agreement for said Cinch I.T. Franchised Business has been signed by both the Multi-Unit Developer, or its affiliate, and Cinch I.T.. This means that the franchisee cannot begin operations until all parties have signed the agreement.
Failure to adhere to the Development Schedule, including any extensions approved by Cinch I.T., constitutes a material event of default under the agreement. This highlights the importance of meeting deadlines and maintaining open communication with Cinch I.T. regarding any potential delays or issues in developing the franchised business.