For Cinch I.T., what should be included in the list of owners?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
our 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.
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, if the franchisee is a business entity, the ownership interests in the entity must be accurately and fully listed in Addendum D, which is the Principal Owner's Statement attached to the agreement. Each individual with an ownership interest in the business entity must also sign Addendum D.
Furthermore, every person with an ownership interest in the business entity must sign the Guaranty Agreement, which is attached to the Franchise Agreement as Addendum C. The original signed Guaranty Agreement must be provided to Cinch I.T. This ensures that all individuals with a stake in the franchise are personally committed to upholding the obligations of the agreement.
This requirement is intended to ensure that Cinch I.T. knows exactly who the owners of the franchise are and that each owner is fully aware of their responsibilities and obligations. This is a common practice in franchising to provide the franchisor with recourse against all individuals who benefit from the franchise, not just the business entity itself. It also ensures that all owners are aligned in their commitment to the Cinch I.T. brand and standards.