What is the minimum fee a Cinch I.T. franchisee will pay for the evaluation of an alternative supplier?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
iate testing of the proposed new product or service, at your expense. We do charge a fee for evaluating alternative suppliers, services and products; you must pay us the greater of $500 or the actual cost of the review and/or inspection, including the actual cost of laboratory fees, professional fees, and travel and living expenses, as well as any other fees we pay to third parties in furtherance of the evaluation. If we have not responded in writing within 30 days of our written receipt of such information or product samples from you, or the delivery of test results if testing is conducted, then the request will be deemed rejected by us. In providing such approval we may consider not just the quality standards of the products or services, but the delivery capabilities, financing terms a
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 22–26)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, a franchisee who wants to use a supplier not already approved by Cinch I.T. must first get approval from the company. To do so, the franchisee must provide sufficient written information about the potential supplier. Cinch I.T. may also request product samples for examination to ensure they meet quality standards. Cinch I.T. has the right to inspect the supplier's facilities or conduct testing of the new product or service at the franchisee's expense.
The minimum fee a Cinch I.T. franchisee will pay for the evaluation of an alternative supplier is $500. However, the franchisee could pay more. Cinch I.T. charges the greater of $500 or the actual cost of the review and/or inspection. This includes the actual cost of laboratory fees, professional fees, travel and living expenses, and any other fees Cinch I.T. pays to third parties during the evaluation.
If Cinch I.T. does not respond in writing within 30 days of receiving the required information, product samples, or test results, the request is considered rejected. Cinch I.T. will consider the quality standards, delivery capabilities, financing terms, and the supplier's ability to service the entire Cinch I.T. Franchise System when providing approval.