What is the initial franchise fee for the first Cinch I.T. Franchise Agreement?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchised Business to be developed under this Agreement, You may locate the business office of the Franchised Business pursuant to the terms of each Franchise Agreement. It is the express intent of the Parties hereto to limit Our responsibility under this Section to general guidance and assistance as We may periodically provide in Our operations manual ("Operations Manual").
- 4.2 You shall pay to Us an initial franchise fee ("Initial Franchise Fee") of Fifteen Thousand Dollars ($15,000.00) for the first CINCH I.T. Franchise Agreement and a development fee ("Development Fee") of _________ Dollars ($___________) for each additional CINCH I.T. Franchised Business to be developed under this Agreement. The Initial Franchise Fee and Development Fee are due in full upon the execution of this Agreement. All amounts collected shall be deemed fully earned immediately upon receipt and shall be non-refundable, regardless of whether You open any of the CINCH I.T. Franchised Businesses You are obligated to open in the Development Area. We will credit each Development Fee paid as full payment of the initial franchise fee due for each subsequent franchise to be opened under this Agreement.
- 4.3 You shall pay to Us an initial training fee ("Initial Training Fee") of Thirty Thousand Dollars ($30,000.00) when You sign Your first CINCH I.T. Franchise Agreement. The then-current Initial Training Fee for the second CINCH I.T. Franchised Business to be developed under this Agreement will be reduced twenty five percent (25%).
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, the initial franchise fee for the first Cinch I.T. Franchise Agreement is $15,000. This fee is due in full upon the execution of the Franchise Agreement. The FDD also states that this fee is non-refundable and is considered fully earned by Cinch I.T. upon receipt, regardless of whether the franchisee ever opens a Cinch I.T. Franchised Business.
In addition to the initial franchise fee, the franchisee must also pay an initial training fee of $30,000 when signing the first Franchise Agreement. There is also a Marketing Starter Package Fee of $4,000 for business cards, promotional boxes, cybersecurity packets, presentation packets, referral cards and other marketing materials.
For franchisees planning to develop multiple Cinch I.T. locations, a development fee is required for each additional location. However, the development fee paid will be credited as full payment of the initial franchise fee for each subsequent franchise opened under the agreement. The initial training fee is reduced for subsequent franchises, with a 25% reduction for the second franchise and a 50% reduction for the third and subsequent franchises.