What is the Cinch I.T. multi-unit extension fee, 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 Developer who wishes to extend their Development Period will incur a Multi-Unit Extension Fee. This fee amounts to $5,000 per extension.
The fee is payable when incurred, meaning it becomes due at the time the Multi-Unit Developer requests and is granted an extension to their development period. This fee is specifically associated with the Development Agreement, which outlines the schedule and requirements for opening multiple Cinch I.T. franchise locations.
For a prospective Cinch I.T. multi-unit franchisee, this means that if they need more time to meet the milestones outlined in their Development Agreement, they will need to budget an additional $5,000 for each extension requested. This is in addition to other fees associated with operating the franchise, such as royalties and marketing fees. It is important for multi-unit developers to carefully plan their development schedule to minimize the need for extensions and the associated fees.