If the Cinch I.T. franchisee is a business entity, who can provide personal supervision?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
rocure such insurance and to charge the cost of such insurance to You, which charges, together with a reasonable fee for Our expenses in taking such action, shall be payable by You immediately upon notice from Us.
24. BUSINESS ORGANIZATION AND PERSONAL GUARANTY(S)
- (a) If You are an individual or individuals, then You acknowledge and agree that the grant of license in Section 3 is made by Us in reliance on Your personal attributes and in consideration of the trust and confidence which We place in You, and on Your representation that You will actively and substantially participate personally in the beneficial ownership and management of the CINCH I.T. Franchised Business.
- (b) In the event You are a business entity (including but not limited to a corporation, a limited liability company, a partnership, a limited liability partnership, a trust), in addition to being newly formed, You must complete and sign the Principal Owner's Statement attached to this Agreement as Addendum D and each individual with an ownership interest in You must also sign Addendum D. Further, You represent, warrant and covenant that:
- (i) You are newly formed, duly organized and validly exist under the laws of the state in which You were formed;
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 45–47)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, if the franchisee is an individual, Cinch I.T. grants the license based on the personal attributes of the individual and their active participation in the business. If the franchisee is a business entity, each individual with an ownership interest in the entity must sign a Guaranty Agreement.
Furthermore, the franchisee must ensure that a Designated Manager is fully trained and devotes their full time to managing, supervising, and developing each Cinch I.T. Franchised Business. This Designated Manager must also be identified to Cinch I.T.
In essence, whether the franchisee is an individual or a business entity, Cinch I.T. emphasizes the importance of personal involvement and qualified management in the operation of the franchise. For business entities, this involves guarantees from all owners and the appointment of a Designated Manager.