factual

What is the Cinch I.T. franchisee's obligation regarding the Initial Training Program?

Cinch_I_T Franchise · 2024 FDD

Answer from 2024 FDD Document

Franchise Agreement; or (b) operate or permit others to operate within your territory.

Training

You, or your Operating Principal (if you are an entity), and one technician and one salesperson must successfully complete our Initial Training Program ("Initial Training Program") to our reasonable satisfaction, prior to commencing operations of your Franchised Business.

The Operating Principal may attend either the technical training module or sales training modules only if they function in that capacity for the Franchised Business. The CINCH I.T. franchise model requires that at all times you must employ at least one trained salesperson and one trained technician each of whom has satisfactorily completed the Initial Training Program. Vacancies in either position must be filled within 90 days and the Initial Training Program for that module commenced within 30 days after hire.

We will provide the Initial Training Program for two people as follows: a Pre-Training Program followed by the "Cinch University" Training Program with a curriculum containing distinct modules: franchise owner administration, sales training, and technical training.

The Pre-Training Program is conducted via telephone, Webinar and our Intranet. The time to complete the Pre-Training varies depending on how much time you can devote to training and how quickly you are able to absorb the materials. We expect Pre-Training to take you 4-6 weeks to complete and it must be completed prior to attending the "Cinch University" Training Program outlined below.

During Weeks 1 and 2 of remote training, the Operating Principal must attend the franchise

owner administration training module; Weeks 3-7 simultaneous remote Sales Training and Technician Training; Weeks 8-9 simultaneous on-site Sales Training and Technician Training; and Weeks 10-12 simultaneous remote Sales Training and Technician Training.

We reserve the right to charge a training fee of $15,000 per module for (i) each additional person, (ii) each person who is repeating the course or replacing a person who did not pass, and (iii) each subsequent Operating Principal, general manager, technician or salesperson who is required to attend one or more modules of the Cinch University Training Program.

Everyone who must attend training will be identified in the Notice of Key Employees, attached as Addendum B to the Franchise Agreement. Anyone who attends the Training Program must complete the Training Program to our satisfaction. We may extend the Training Program for anyone who fails to successfully complete it. If you do not successfully complete all required parts of the Training Program to our reasonable satisfaction within 6 months after signing the Franchise Agreement we may terminate the Franchise Agreement without refund of any initial fees.

We reserve the right to modify the length, location, and timing of the Training Program. The Training Program may be changed without notice to reflect updates in the curriculum, methods, personnel and System Standards.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 28–39)

What This Means (2024 FDD)

According to Cinch I.T.'s 2024 Franchise Disclosure Document, the franchisee, or their Operating Principal (if the franchisee is an entity), along with one technician and one salesperson, must successfully complete the Initial Training Program before commencing operations. If the Operating Principal functions as a technician or salesperson, they may attend only the relevant technical or sales training modules. Cinch I.T. requires franchisees to employ at least one trained salesperson and one trained technician who have both satisfactorily completed the Initial Training Program.

Vacancies in either the salesperson or technician positions must be filled within 90 days, and the Initial Training Program for the new hire must commence within 30 days of their hire date. The Initial Training Program includes a Pre-Training Program conducted via telephone, Webinar, and the Intranet, which is expected to take 4-6 weeks to complete before attending the "Cinch University" Training Program.

The "Cinch University" Training Program lasts for two weeks at the company headquarters in Worcester, Massachusetts. The training schedule includes remote franchise owner administration training for the Operating Principal during Weeks 1 and 2, simultaneous remote Sales Training and Technician Training during Weeks 3-7, simultaneous on-site Sales Training and Technician Training during Weeks 8-9, and simultaneous remote Sales Training and Technician Training during Weeks 10-12.

Cinch I.T. reserves the right to charge a training fee of $15,000 per module for each additional person, each person repeating the course or replacing someone who did not pass, and each subsequent Operating Principal, general manager, technician, or salesperson required to attend one or more modules of the Cinch University Training Program. Failure to successfully complete all required parts of the Training Program within 6 months after signing the Franchise Agreement may result in termination of the agreement without a refund of initial fees.

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.