When is the late fee due to Cinch I.T., and what triggers it?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
| TYPE OF FEE1 | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| to client | must pay us for our time and any compensation (i.e., replacement product) given to clients. | ||
| Audits | Cost of audit plus interest on underpayment | As incurred | Payable only if audit shows understatement is willful or if 2% or more of gross sales for a two month period. |
| Interest | Interest on overdue payment | As incurred | Interest rate will be 1.5% per month or if the maximum interest rate permitted by state law is less, then interest will be charged at the lesser allowed rate. Interest begins from the date payment was due. |
| Late Fee | $100 per occurrence plus interest | On demand, but only if you are delinquent in your payments to us or otherwise violate an obligation under the Franchise Agreement | Payable the day after payment or other event (Ex: a required report) is due, in addition to the interest. |
| Transfer, Assignment | $10,000 | Time of transfer | Payable if you sell your franchise. No fee charged if you transfer franchise to a corporation or other entity you control. |
| Transfer Fee – Development Agreement | $5,000 for each unopened Franchise; |
Source: Item 6 — OTHER FEES (FDD pages 14–20)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, a late fee of $100 plus interest is charged if a franchisee is delinquent in their payments to Cinch I.T. or violates any obligation under the Franchise Agreement. This fee is payable on demand, specifically the day after the payment or other event, such as a required report, is due.
This means that if a Cinch I.T. franchisee misses a payment deadline or fails to submit a required report on time, they will incur a $100 late fee in addition to interest on the overdue amount. The interest charged on overdue payments is 1.5% per month, or the maximum interest rate permitted by state law if it is less than 1.5%.
It is important for prospective Cinch I.T. franchisees to understand these terms to avoid incurring unnecessary fees. Franchisees should ensure they make all payments on time and comply with all obligations outlined in the Franchise Agreement to avoid triggering the late fee and associated interest charges.