Is the Initial Training Fee for a new Cinch I.T. franchisee 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 Cinch I.T.'s 2024 Franchise Disclosure Document, the Initial Training Fee is not refundable. The initial training fee is $30,000.00. This fee is for the franchisee and one additional person to attend the initial training program. The fee is payable in full when the Franchise Agreement is executed.
This means that once a prospective Cinch I.T. franchisee signs the Franchise Agreement and pays the $30,000 Initial Training Fee, they will not receive a refund of this fee under any circumstances, even if they do not ultimately open their franchise. This is a standard practice in franchising, as the franchisor incurs costs in preparing and delivering the training program.
For franchisees developing multiple Cinch I.T. locations, the initial training fee is reduced for the second and subsequent locations. The initial training fee for the second location is reduced by 25%, and for the third and subsequent locations, the fee is reduced by 50%.