If a franchisee answers 'Yes' to questions 2 through 7 in the Cinch I.T. questionnaire, what are they required to do?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
| Please provide honest and complete responses to each of the following: |
|---|
| 1. Have you received and personally reviewed our Franchise Agreement and all its attachments? Yes |
| No |
| CONSIDER THE FOLLOWING QUESTIONS IN REGARD TO INFORMATION PROVIDED DIRECTLY |
| FROM FRANCHISOR OR ITS REPRESENTATIVES (NOT ITS FRANCHISEES): |
| 2. Has any employee, broker or other person representing Franchisor made any statements or promises concerning |
| the revenues, profits or operating costs of a CINCH I.T. franchise? |
| Yes No |
| 3. Has any employee, broker or other person representing Franchisor made any statements or promises, other than |
| those disclosed at Item 19 of the Disclosure Document, concerning the amount of money you may earn in the operating |
| of a CINCH I.T. franchise? |
| Yes No |
| 4. Has any employee, broker or other person representing Franchisor made any statements or promises concerning |
| the likelihood of success that you should or might expect to achieve from operating a CINCH I.T. franchise? |
| Yes No |
| 5. Has any employee, broker or other person representing Franchisor made any statements or promises concerning |
| the advertising, marketing, training or support service or assistance that we will furnish to you that contradicts any |
| information in the FDD? |
| Yes No |
| 6. Has any employee, broker or other person representing Franchisor made any statements or promises concerning |
| the costs you may incur in starting or operating a CINCH I.T. franchise that contradicts any information in the FDD? |
| Yes No |
| 7. Has any employee, broker or other person representing Franchisor made any statements or promises or agreements |
| relating to a CINCH I.T. franchise that contradicts any information in the FDD? |
| Yes No |
| If you have answered Yes to any of the questions numbered 2 through 7 above, please provide a full explanation for |
| each. Attach additional pages if necessary. |
| 8. I signed the Franchise Agreement and Addendum (if any) on,, and acknowledge that no |
| Agreement or Addendum is effective until signed and dated by Franchisor. |
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, if a prospective franchisee answers 'Yes' to any of questions 2 through 7 in the questionnaire, they must provide a full explanation for each affirmative answer. This explanation may require attaching additional pages to the questionnaire if necessary to fully address the concerns.
Questions 2 through 7 address whether any employee, broker, or person representing Cinch I.T. made statements or promises about potential revenues, profits, operating costs, likelihood of success, advertising, marketing, training, support, or other costs that contradict the information provided in the Franchise Disclosure Document (FDD). These questions are designed to ensure that prospective franchisees are not relying on any information outside of the official FDD when making their investment decision.
The requirement to provide a full explanation for any 'Yes' answers is a critical step in the franchise investigation process. It allows Cinch I.T. to identify and address any potential misrepresentations or misunderstandings that may have occurred during the sales process. This protects both the franchisee and the franchisor by ensuring that all parties are operating with the same understanding of the franchise opportunity. It also highlights the importance of relying solely on the FDD and any written agreements when evaluating a franchise investment.
This requirement is a standard practice in franchising, as it promotes transparency and helps to prevent future disputes. Prospective franchisees should take this questionnaire seriously and provide honest and complete answers. If there are any discrepancies between what was verbally communicated and what is written in the FDD, it is essential to document those discrepancies and seek clarification from Cinch I.T. before moving forward with the franchise investment.