How much did Cinch I.T. spend on marketing in 2021?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
eting Fund Fee in the amount of one and one half percent (1.5%) of the Franchised Business' Gross Sales per month, or Two Hundred Dollars ($200.00) per month, whichever is greater, in order to develop and maintain a local, regional or national Marketing program.
- (b) The Marketing Fund will be administered by Us. We, in Our sole discretion will be responsible for (i) developing and implementing advertising and marketing programs for the benefit of Our entire System; (ii) deciding which media to use and under what terms; (iii) preparing and making available to all franchisees an annual statement of income and expenses upon written request; the cost of preparing the statements will be paid by the Marketing Fund; (iv) securing the services of advertising agencies or other marketing professionals; and (v) limiting expenditures from the Marketing Fund, to the extent possible, to those areas in which franchisees are contributing to the Marketing Fund. Funds not spent in any given fiscal year will be carried forward to the next year. We reserve the right to place additional local, regional or national advertising at Our expense. All Franchisor-owned units or affiliate-owned units, operating under the CINCH I.T. Mark, will contribute to the Marketing Fund on the same basis as franchised units. A portion of the total Marketing Fund may be used annually to reimburse Us or Our designees for advertising and marketing-related administrative costs, indirect expenses and subsidizing costs. As the CINCH I.T. System expands, We may establish an advertising council.
- (c) We will maintain separate bookkeeping accounts for the Marketing Fund and may, but will not be required to cause Marketing Fund contributions to be deposited into one or more separate bank accounts. The Marketing Fund is not a trust, and We are not a fiduciary or trustee of the Marketing Fund or the monies in the Marketing Fund. However, We may, in Our discretion, separately incorporate the Marketing Fund or create a Marketing Fund trust, over which We may be the trustee, into which Marketing Fund contributions may be deposited.
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
Based on the 2024 Cinch I.T. Franchise Disclosure Document, there is no specific information provided regarding the amount Cinch I.T. spent on marketing in 2021. However, Item 23 discusses the Marketing Fund and how it is administered. Cinch I.T. has sole discretion over the advertising and marketing programs, deciding which media to use, and preparing annual statements of income and expenses for franchisees upon written request. Funds not spent in a given fiscal year are carried forward.
Franchisees are required to spend a minimum of $1,000 per month on franchisor-directed local advertising and marketing programs after their business has been in operation for one month. Additionally, franchisees must spend a minimum of $4,000 for a grand opening marketing and promotional program.
To obtain the specific marketing expenditure for 2021, a prospective franchisee should request the annual statement of income and expenses for the Marketing Fund from Cinch I.T. This statement would provide a detailed breakdown of how the marketing funds were utilized during that period. Understanding these expenditures can help a franchisee assess the effectiveness of the franchisor's marketing strategies and plan their own local marketing efforts accordingly.