When is the initial franchise fee payment due for a Cinch I.T. franchise?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
terms and conditions of Our then-current form of franchise agreement. In such circumstances, and notwithstanding the foregoing, We may, on ten (10) days written notice, terminate Your Franchise Agreement.
7. FRANCHISEE'S PAYMENTS
- (a) You shall pay to Us an Initial Franchise Fee of Fifteen Thousand Dollars ($15,000.00). Such Initial Franchise Fee shall be due and payable in full upon the execution of this Agreement. You understand and acknowledge that the Initial Franchise Fee is non-refundable and is fully earned by Us at the time the parties execute this Agreement.
- (b) You shall pay to Us an Initial Training Fee of Thirty Thousand Dollars ($30,000.00) for You and one additional person to attend Our Initial Training as further described in Sections 9 and 13. Such Initial T
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 of $15,000 is due in full upon the execution of the Franchise Agreement. This fee is non-refundable and is considered fully earned by Cinch I.T. at the time the agreement is signed.
For prospective Cinch I.T. franchisees, this means that the $15,000 initial franchise fee must be paid when signing the agreement to open a Cinch I.T. franchise. This is a standard practice in franchising, as the initial fee compensates the franchisor for granting the franchise rights and providing initial support and training.
It is important to note that this fee is non-refundable, regardless of whether the franchisee ultimately opens the Cinch I.T. business. Therefore, potential franchisees should carefully consider their decision before signing the agreement and paying the initial franchise fee. Additionally, franchisees will also need to pay an initial training fee of $30,000 upon the execution of the agreement.