Is the Initial Training Fee for a Cinch I.T. franchise refundable?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
chise 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 the 2024 Cinch I.T. Franchise Disclosure Document, the initial training fee is not refundable. The initial training fee is $30,000, and it is due when you sign your first Cinch I.T. Franchise Agreement. This fee covers the cost for you and one additional person to attend the initial training program.
The FDD states that all amounts collected, including the initial training fee, are deemed fully earned immediately upon receipt and are non-refundable. This means that once you pay the $30,000, Cinch I.T. is not obligated to return it, regardless of whether you ultimately open a Cinch I.T. Franchised Business.
For franchisees developing multiple Cinch I.T. Franchised Businesses, the initial training fee is reduced for subsequent franchises. The initial training fee for the second Cinch I.T. Franchised Business is reduced by 25%, and for the third and each subsequent franchise, it is reduced by 50%. However, the non-refundable nature of the initial training fee remains consistent across all franchise agreements.