What information must be printed for each officer/shareholder/member of a Cinch I.T. franchisee business entity?
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 the 2024 Cinch I.T. Franchise Disclosure Document, if a franchisee is a business entity, each individual with an ownership interest must sign Addendum D, the Principal Owner's Statement. The ownership interests in the business entity must be accurately and fully listed in Addendum D.
Furthermore, each person with an ownership interest must sign the Guaranty Agreement attached to the Franchise Agreement as Addendum C and provide the original signed Guaranty Agreement to Cinch I.T.
This requirement ensures that Cinch I.T. has a clear understanding of who the principals are in each franchise location and that those individuals are personally committed to upholding the franchise agreement. This is a common practice in franchising, as it provides the franchisor with recourse against individuals, not just the business entity, in case of default or breach of contract.