For Cinch I.T., what information must the guarantor provide in the signature section?
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)
Based on the 2024 Franchise Disclosure Document, if a Cinch I.T. franchisee is a business entity, each individual with an ownership interest in the entity must sign the Guaranty Agreement attached to the Franchise Agreement as Addendum C. The franchisee must then provide the original signed Guaranty Agreement to Cinch I.T.
This requirement ensures that Cinch I.T. has recourse to the personal assets of the owners of the business entity should the franchise fail to meet its financial obligations. This is a common practice in franchising, as it provides the franchisor with an additional layer of security.
The document does not specify the exact information required in the signature section of the Guaranty Agreement. It only states that each individual with an ownership interest must sign the agreement. To determine the specific information required, a prospective franchisee should carefully review Addendum C of the Franchise Agreement and consult with a legal professional.