Can a Cinch I.T. franchisee transfer their franchise if they are in default of the franchise agreement?

According to the 2024 Cinch I.T. Franchise Disclosure Document, a franchisee is restricted from transferring their franchise if they are in default of the franchise agreement. Cinch I.T. requires that the franchisee not be in default at the time of the request to transfer and as of the date of the transfer.

Cinch I.T. emphasizes that the rights and duties within the agreement are personal to the franchisee and granted based on their qualifications. The franchisor requires that all monetary and outstanding obligations to Cinch I.T., its affiliates, and suppliers must be fully paid and satisfied before a transfer can be approved. Additionally, the franchisee and their affiliates must not be in default of any provision of their Franchise Agreements or any other agreement with Cinch I.T. or its affiliates.

These conditions ensure that the transferee meets Cinch I.T.'s standards for new franchisees, including good reputation, character, experience, business acumen, operational ability, and financial strength. The franchisor's consent to a transfer is a subjective determination, considering whether the transferee assumes all obligations under the agreement and whether all debts to Cinch I.T. and its affiliates have been paid.