factual

What is the nature of the marketing and advertising material provided by Cinch I.T.?

Cinch_I_T Franchise · 2024 FDD

Answer from 2024 FDD Document

[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING]

You may develop your own marketing and promotional materials provided they are submitted to us in advance for review and approval. You must obtain our prior written approval of all advertising, marketing and promotional materials that you desire to use at least 30 days before the implementation of such plans, unless such materials have been previously approved by us. You may not use such materials until they have been approved by us in writing and will promptly discontinue use of any advertising, marketing or promotional materials upon our request. Any materials submitted by you to us that have not been approved or disapproved, in writing, within 15 days of our receipt will be deemed disapproved. (Franchise Agreement - Section 21)

You agree that upon transfer, termination or expiration of this Agreement, you will immediately remove all advertising that you control and notify all advertising sources that your advertising must be removed and/or canceled immediately. For advertising that cannot be immediately canceled, you are responsible for any and all costs related to such advertising until such time as it

can be canceled or it expires. (Franchise Agreement - Section 21)

We currently do not have an advertising council composed of franchisees to advise us on our advertising policies. We may decide to implement an advertising council in the future.

We currently do not have any advertising cooperatives and have no plans to form such cooperatives in the immediate future. However, you must join and actively participate in any organizations or associations of franchisees or advertising cooperatives that we establish or that are established at our direction for the purpose of promoting, coordinating, and purchasing advertising in local, regional, or national areas where there are multiple CINCH I.T. businesses.

You may request a local area code telephone number for your CINCH I.T. business, which will be routed to us or our affiliate. We will own all rights to the telephone listing. You will be solely responsible for all costs related to this telephone number.

Computer System

While the components of our hardware and software are widely available, the technology system includes components that are proprietary.

To run your business you are required to have the following hardware:


[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING]

Marketing Program

We provide a national or regional marketing program. We charge you a 1.5% royalty, or a $200 monthly minimum, whichever is greater, to fund it. The Marketing Fund is administered by our members.

We and our designees will have the sole authority to direct all advertising, marketing, and promotional programs of the Marketing Fund and will have sole discretion over all aspects of those programs, including the concepts, materials, and media used and the placement and

allocation of them.

The Marketing Fund will be used, in our discretion, to pay for developing and conducting activities that we believe will enhance the goodwill associated with the Marks and the image of the CINCH I.T. System and to pay for the administration of the Marketing Fund and its programs. The purpose of the Marketing Fund is to pool marketing money from franchised businesses so as to achieve greater benefits for all in promoting the trade name and Marks.

For this reason, the Marketing Fund is not obligated to make expenditures for you or any other franchisee which are equivalent or proportionate to your or another franchisee's contribution, or to ensure that any particular franchisee benefits directly or pro rata from the marketing or promotion conducted by the Marketing Fund.

No portion of the Marketing Funds collected will be used principally to sell franchises. However, a brief statement about availability of information regarding the purchase of CINCH I.T. franchises may be included in advertising, marketing and other items produced and/or distributed using the Marketing Fund.

The Marketing Fund may elect to assist in the marketing of franchises in otherwise weak markets, and to assist franchises that are slow to ramp up by providing additional marketing dollars.


[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING]

We have the right to remotely access all your computer information and records to monitor your productivity and we have no contractual limitations on our ability to do so. (Franchise Agreement - Section 10)

Internet/e-commerce

We restrict, designate, and have the right to approve, or control all of your electronic media, including Internet activities, and e-mail marketing correspondence, digital content, and electronic communications if any. This includes any websites and all Social Networking and Marketing activities, including Twitter, Facebook, Foursquare, LinkedIn or any social media outlets. This also includes any group or social buying platforms, promotions or campaigns. You must follow the most recent rules and regulations published in our Operations Manuals or other manuals we have created regarding the upkeep and communications sent out via these channels.

You are not permitted to establish a website on the Internet using any domain name containing the words CINCHIT.com, .net, .biz, .org or any other top level domain or variation thereof. We maintain the cinchit.com Internet Website and provide you with access to our Website and include your location information. We may require that you utilize e-commerce products or services designated by us.

Any digital or electronic content published must be within brand communication standards and is subject to our approval. All digital imagery bearing our Marks is subject to our approval. We have the final decision concerning all information and functionality that appears on the CINCH I.T. Internet Website and will update or modify the CINCH I.T. Internet Website according to a schedule that we determine. By posting or submitting to us information or materials for the Internet Website, you are representing to us that the information and materials are accurate and not misleading and do not infringe upon any third party's rights. You must notify us whenever any information about you or the Franchise Business on the CINCH I.T. Internet Website changes or is not accurate.

Due to the speed of electronic communication, all instructions by us which are deemed to restrict, designate or control e-commerce activities must be responded to within 24 hours.


[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING]

Due to the speed of electronic communication, all instructions by us which are deemed to restrict, designate or control e-commerce activities must be responded to within 24 hours.

We also reserve the right to restrict, designate and have the right to approve or control any existing or future (not yet developed) Fan Page or other marketing, advertising or social networking services of the Franchised Business, including the sending of bulk e-mail, other than in accordance with the guidelines in the Operations Manual or otherwise as we specify in writing.

Site

You may operate your CINCH I.T. business as a home or office based business as long as it complies with all local zoning requirements. We do not provide specifications for leased office space but if you choose to operate your business from an office location, it must be within your designated territory.

Franchise Agreement

The length of time between signing your Franchise Agreement and actually opening for business should be 3 to 4 months. This time period is generally determined by how long it takes you to successfully complete training and initiate marketing. You must open your CINCH I.T. Franchised Business within 6 months of signing your Franchise Agreement. If you fail to open your CINCH I.T. Franchised Business within 6 months of signing the Franchise Agreement, we have the right to (a) terminate the Franchise Agreement; or (b) operate or permit others to operate within your territory.

Training

You, or your Operating Principal (if you are an entity), and one technician and one salesperson must successfully complete our Initial Training Program ("Initial Training Program") to our reasonable satisfaction, prior to commencing operations of your Franchised Business.

The Operating Principal may attend either the technical training module or sales training modules only if they function in that capacity for the Franchised Business. The CINCH I.T. franchise model requires that at all times you must employ at least one trained salesperson and one trained technician each of whom has satisfactorily completed the Initial Training Program. Vacancies in either position must be filled within 90 days and the Initial Training Program for that module commenced within 30 days after hire.


[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING]

  • e) Administer and maintain the Marketing Fund. (Franchise Agreement Section 21)
  • f) If we deem it necessary or advisable, provide you individual or group guidance and assistance, by various methods which may include personal visit, telephone, newsletters, brochures, reports, bulletins or electronically. This help may include advice on maximizing sales and profits, establishing minimum and maximum pricing, marketing, employee training, client service, vendor relations, equipment, or any operating problems you may be experiencing. (Franchise Agreement - Section 9)
  • g) Allow you to participate in programs that may be developed and offered by us on a system-wide basis to our franchisees. (Franchise Agreement - Section 9)
  • h) Provide you with copies of our available marketing and advertising material, if you desire, at no cost via our Intranet. (Franchise Agreement - Section 21)
  • i) Provide you with additional training programs that we may develop in the future. Except for Remedial Training, there is no charge for programs you must attend. You must pay travel costs and other expenses you incur to attend training programs for you and anyone attending with you. We may charge for optional training programs. (Franchise Agreement - Section 13)
  • j) As we deem appropriate, test new products, services, equipment or technologies, and if they meet our System Standards, we will make them available to you. (Franchise Agreement - Section 9)
  • k) Include key information as we deem appropriate on your Franchised Business on the CINCH I.T. Internet website, and provide you with no less than one e-mail address, which you must use as the Franchised Business' e-mail address and for all electronic transmissions. (Franchise Agreement - Section 9)
  • l) Continue efforts to establish and maintain high standards of client satisfaction and professionalism in the System. (Franchise Agreement - Section 17)
  • m) Take initiatives and steps to protect the integrity of the Brand. (Franchise Agreement Sections 17 and 19)

Marketing Program

We provide a national or regional marketing program. We charge you a 1.5% royalty, or a $200 monthly minimum, whichever is greater, to fund it. The Marketing Fund is administered by our members.


Item 11 FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING

Except as listed below, we are not required to provide you with any assistance.

Pre-opening Assistance

Before you open your business, we will:

  • a) License you the Marks necessary to begin operating your CINCH I.T. Franchised Business (Franchise Agreement Sections 2 and 3)
  • b) Designate your territory within which you will open a single CINCH I.T. Franchise. (Franchise Agreement Section 4 and Addendum A; Development Agreement- Section 1)

  • c) Provide delivery of Marketing Starter Package. (Franchise Agreement Section 7)
  • d) Provide access to our confidential Operations Manual for your use while the Franchise Agreement is in effect and you are not in default. The Operations Manual contains mandatory System Standards and suggested specifications, standards, methods and procedures. The Operations Manual will be provided through our Intranet or any other medium capable of conveying its content. The Operations Manual is confidential and remains our property. We may amend, modify, or supplement the Manual at any time, so long as such amendments, modifications, or supplements will, in our good faith opinion, benefit us and our existing and future franchisees or will otherwise improve the System. You must comply with revised standards and procedures within 7 days after we transmit the updates. (Franchise Agreement – Section 9)

The Operations Manual was updated December, 2021.

The Table of Contents of the Operations Manual appears as Exhibit K to this Disclosure Document. The total number of pages in our Operations Manual is 130 pages.

  • e) Give you general assistance in the opening of your business including operational organization and vendor coordination. We will also make our personnel available to help you plan pre-opening promotional programs. You will need to give us at least 90 days' notice of the planned opening date of your business if you wish us to provide you with pre-opening assistance. (Franchise Agreement - Section 9 and Section 14)
  • f) Provide the Initial Training Program which you are required to complete prior to opening your Franchised Business. (Franchise Agreement - Section 9 and Section 13)

Post-Opening Assistance

During the operation of your business, we will:

The Marketing Fund may elect to assist in the marketing of franchises in otherwise weak markets, and to assist franchises that are slow to ramp up by providing additional marketing dollars.

The Marketing Fund may be used to pay for market research, media space, branding, public relations, sponsorships, partnerships, and other activities designed to promote the organization, the trade name and the Marks; travel and related miscellaneous expenses; conducting Internetbased advertising and marketing campaigns; utilizing social and business networking media sites and other emerging media or promotional tactics; developing, maintaining, and updating our Website on the Internet; search engine optimization; media buying; print, radio, television, direct mail, or other promotions; providing promotional and other marketing materials and services to the businesses operating under the CINCH I.T. System, or any combination of these. We will direct all programs financed by the Marketing Fund, with sole discretion over t

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 28–39)

What This Means (2024 FDD)

According to Cinch I.T.'s 2024 Franchise Disclosure Document, franchisees may develop their own marketing and promotional materials, but these must be submitted to Cinch I.T. for review and written approval at least 30 days before use. Materials not approved or disapproved within 15 days of receipt are deemed disapproved. Franchisees must discontinue using any materials upon Cinch I.T.'s request. Upon termination or expiration of the Franchise Agreement, franchisees must immediately remove all advertising they control and notify advertising sources to cancel advertising. The franchisee is responsible for all costs related to advertising that cannot be immediately canceled until it expires.

Cinch I.T. provides a national or regional marketing program funded by a 1.5% royalty or a $200 monthly minimum, whichever is greater. Cinch I.T. and its designees have sole authority over the advertising, marketing, and promotional programs of the Marketing Fund, including concepts, materials, media, and placement. The Marketing Fund aims to enhance goodwill associated with Cinch I.T.'s marks and image and may be used for market research, media, branding, public relations, sponsorships, internet-based advertising, social media, website maintenance, search engine optimization, and promotional materials.

Cinch I.T. also restricts and controls all electronic media, including internet activities, e-mail marketing, digital content, and electronic communications. Franchisees are not permitted to establish a website using domain names containing "CINCHIT" and must adhere to brand communication standards for any digital content. Cinch I.T. maintains the cinchit.com website and includes franchisee location information. Franchisees must respond within 24 hours to instructions restricting or controlling e-commerce activities.

Cinch I.T. will provide copies of available marketing and advertising material at no cost via their Intranet if the franchisee desires it. They may also provide individual or group guidance and assistance via various methods, including personal visits, telephone, newsletters, brochures, reports, bulletins, or electronically, which may include advice on maximizing sales and profits, establishing minimum and maximum pricing, marketing, employee training, client service, vendor relations, equipment, or any operating problems the franchisee may be experiencing.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.