Are the initial training fees refundable for a Cinch I.T. franchise?
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 non-refundable. The initial training fee is $30,000, and it is for the franchisee and one additional person to attend the initial training. This fee is due in full when the Franchise Agreement is executed.
The FDD states that all amounts collected are deemed fully earned immediately upon receipt and are non-refundable. This applies to the initial franchise fee and the initial training fee. This means that once Cinch I.T. receives the $30,000 initial training fee, it is considered fully earned and will not be refunded, regardless of whether the franchisee completes the training or opens their franchise.
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 Cinch I.T. Franchised Business is reduced by 25%. For the third and each subsequent Cinch I.T. Franchised Business, the initial training fee is reduced by 50%. However, these reduced fees are also non-refundable once paid.