When is the Initial Training Fee for Cinch I.T. due?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
chise Agreement.
Initial Training Fee
You must pay us an Initial Training Fee of $30,000 in a lump sum when you sign the Franchise Agreement. The Initial Training Fee provides for one salesperson and one technician to attend the Initial Training Program.
Multi-Unit Development Fee
If you enter into a Development Agreement, you must pay us a development fee equal to the sum of the Initial Franchise Fee due for each Franchised Business that you agree to develop (the "Development Fee"). The Development Fee will be credited towards the initial Franchise Fee for each CINCH I.T. Franchised Business developed pursuant to the Development Agreement. You must pay the Development Fee in a lump sum when you sign the Development Agreement. The Development Fee is not refundable.
Multi-Unit Initial Training Fee
Under the Development Agreement, you must pay to us an Initial Training Fee of $30,000 in a lump sum for the first CINCH I.T.
Source: Item 5 — INITIAL FEES (FDD pages 13–14)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, the Initial Training Fee is due in a lump sum when you sign the Franchise Agreement. The standard Initial Training Fee is $30,000 for the first Cinch I.T. franchise. This fee covers the training of one salesperson and one technician in the Initial Training Program.
For franchisees who enter into a Development Agreement for multiple Cinch I.T. franchises, the payment schedule varies slightly. The initial $30,000 training fee for the first franchise is due when signing the first Franchise Agreement. Subsequent franchises under the Development Agreement have discounted training fees: the second franchise's training fee is discounted by 25%, and the third and subsequent franchises' training fees are discounted by 50%. Each of these discounted Initial Training Fees is also due in a lump sum upon signing the respective Franchise Agreement.
It is important to note that all amounts collected by Cinch I.T. are deemed fully earned immediately upon receipt and are non-refundable. Therefore, a prospective franchisee should be certain of their commitment before signing the Franchise Agreement and paying the Initial Training Fee. Additionally, if the franchisee fails to successfully complete all required parts of the Training Program to Cinch I.T.'s reasonable satisfaction within 6 months after signing the Franchise Agreement, Cinch I.T. may terminate the Franchise Agreement without refund of any initial fees.