What is a Cinch I.T. franchisee required to do regarding the use of Cinch I.T. Licensed Rights?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
ions" means the obligations We have to You under this Agreement that must be performed before the date when Your Franchised Business starts its operations.
10. LIMITATIONS ON RIGHTS EXTENDED TO FRANCHISEE
You acknowledge and agree that:
- (a) You will use the Licensed Rights strictly in accordance with the terms of this Agreement. Any unauthorized use of the Licensed Rights is and shall be deemed an infringement of Our rights and a material breach of this Agreement.
- (b) Except as expressly provided by this Agreement, You shall not acquire any right, title or interest to the Licensed Rights. Any and all goodwill associated with the Licensed Rights shall accrue exclusively to Our benefit. Upon the expiration or termination of this Agreement and any renewals, no monetary amount shall be attributable to goodwill associated with Your use of the Licensed Rights.
- (c) Except as provided for in Section 4 of this Agreement above, the Franchised Business and Licensed Rights granted under this Agreement are non-exclusive, and We retain the right, in Our sole discretion:
- (i) To continue to operate CINCH I.T. businesses and to use the Licensed Rights in any territory outside of Your Designated Territory, and to license others to do so; and,
- (ii) To develop, use and franchise the rights to any trade names, trademarks, service marks, trade symbols, emblems, signs, slogans, insignias or copyrights not specifically designated by Us as Licensed Rights, for use with similar or different franchise systems in any territory, on such terms and conditions as We may deem advisable, and without granting You any rights.
- (d) You alone are responsible for operating the Franchised Business in full compliance with all System Standards, as modified from time to time. System Standards mean mandatory specifications, standards, operating procedures, and rules that We periodically prescribe for the development and
operation of CINCH I.T. franchised businesses. All references in this Agreement to System Standards will include any modifications, deletions and/or additions to the System Standards which are authorized by this Agreement or the Operations Manual. Except as otherwise provided in this Agreement, System Standards may regulate any aspect of the operation and maintenance of CINCH I.T. franchised businesses, provided that all System Standards will apply uniformly to all similarly situated CINCH I.T. franchised businesses.
- (e) You shall offer for sale all types of products and/or services that We from time to time authorize. You shall not offer for sale, without Our prior written approval, any other products and/or services, or use any equipment, commercial vehicles or leased premises for any purpose other than the operation of the Franchised Business in full compliance with this Agreement.
- (f) You shall be required to purchase and sell all products and services bearing CINCH I.T.'s trade name and/or logo which We now carry or see fit to carry or develop in the future. You may not develop or sell other products or services on Your own without Our prior written consent.
- (g) In order to allow Us to establish and enforce standards of quality and uniformity for the distribution and sale of Our products and services, and in order to preserve incentive for other entities to become CINCH I.T. franchisees in the future, You shall not sell CINCH I.T. products and services other than on a retail basis as set forth in the Operations Manual, and not for resale by the purchasers thereof, without Our prior written consent and without executing a separate agreement with Us for the right to conduct such sales, if We request the execution of such an agreement.
- (h) We have the right to determine, approve and supervise the quality of services and products sold by You from the Franchised Business, and to take all action We deem necessary to maintain the quality and standards of the services and products, the Franchised Business and Our System. We have the right to establish minimum and maximum prices for the products and services You offer and sell. You must strictly adhere to the prices We establish. We retain the right to modify the prices from time-to-time in Our reasonable discretion. You are required to purchase certain services, equipment and operating supplies, as are more particularly set forth in the Operations Manual, from suppliers whose services, products and materials are approved, and not thereafter disapproved, by Us.
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 use the Licensed Rights strictly in accordance with the terms of the Franchise Agreement. Any unauthorized use of these rights is considered an infringement and a material breach of the agreement. Franchisees do not acquire any right, title, or interest in the Licensed Rights, and all goodwill associated with these rights accrues exclusively to Cinch I.T.'s benefit. Upon expiration or termination of the agreement, no monetary amount will be attributed to goodwill from the franchisee's use of the Licensed Rights.
Cinch I.T. grants franchisees the right to use the Licensed Rights in establishing and operating their franchised business, but franchisees must acknowledge Cinch I.T.'s sole and exclusive right to use its Marks. Franchisees cannot contest the validity or ownership of the Licensed Rights, nor take any action that undermines Cinch I.T.'s rights. Franchisees must adopt and use Cinch I.T. Licensed Rights only in a manner expressly approved by Cinch I.T.
Furthermore, franchisees are required to offer for sale all types of products and services that Cinch I.T. authorizes from time to time. They cannot offer any other products or services without prior written approval. Franchisees must purchase and sell all products and services bearing Cinch I.T.'s trade name and/or logo that Cinch I.T. carries or develops in the future, and they cannot develop or sell other products or services on their own without Cinch I.T.'s consent. Cinch I.T. also has the right to determine, approve, and supervise the quality of services and products sold by the franchisee and to take necessary action to maintain the quality and standards of the services and products. Cinch I.T. retains the right to establish minimum and maximum prices for the products and services franchisees offer and sell, and franchisees must strictly adhere to these prices, which Cinch I.T. can modify from time to time.
Cinch I.T. retains the sole right to control all Internet activity and create websites using domain names it designates. Franchisees may be required to use e-commerce products or services designated by Cinch I.T., which may change over time. Franchisees must comply with Cinch I.T.'s brand communication standards for any digital or electronic content they publish and must respond to instructions regarding e-commerce activities within 24 hours. Cinch I.T. has the final decision on all information and functionality on the Cinch I.T. Internet Website and will update or modify it according to its own schedule. Cinch I.T. also reserves the right to control any existing or future Fan Pages or other advertising or social networking services of the franchised business.