What is the Cinch I.T. Multi-Unit Extension Fee for a Development Agreement, and when is it payable?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
| TYPE OF FEE1 | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| Multi-Unit Extension Fee – Development Agreement | $5,000 per extension | As incurred | Payable if Multi-Unit Developer desires to extend a Development Period. |
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 Multi-Unit Extension Fee for a Development Agreement is required if a Multi-Unit Developer wants to extend their Development Period. This fee is $5,000 per extension.
The fee is payable as incurred, meaning it is due at the time the Multi-Unit Developer requests the extension. This implies that Cinch I.T. requires the fee to be paid when the developer seeks to prolong the period within which they are expected to open new franchise locations under the Development Agreement.
For a prospective Cinch I.T. multi-unit franchisee, this means that if they anticipate needing more time to fulfill their development obligations, they should budget an additional $5,000 for each extension requested. This fee is in addition to other fees associated with the franchise agreement, such as the initial franchise fee and ongoing royalty fees. It is important for potential franchisees to carefully consider their development timeline and financial resources to avoid incurring extension fees.