To whom is the payment for the Cinch I.T. Marketing Starter Package made?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
| TYPE OF EXPENDITURE1 | LOW ESTIMATED AMOUNT | HIGH ESTIMATED AMOUNT | METHOD OF PAYMENT | WHEN DUE | TO WHOM PAYMENT IS TO BE MADE |
|---|---|---|---|---|---|
| Initial Franchise Fee | $15,000 | $15,000 | Lump sum | At signing of Franchise Agreement | Us |
| Initial Training Fee2 | $30,000 | $30,000 | Lump sum | At signing of Franchise Agreement | Us |
| Travel & Living Expenses while Training2 | $1,250 | $1,800 | As incurred | During training | Airlines, hotels, restaurants and car rental |
| Marketing Starter Package | $4,000 | $4,000 | Lump sum | At signing of Franchise Agreement | Us |
| Rent3 | See Note | See Note | |||
| Computer System/ End User Software, Printer, Tools, Inventory & SmartPhone | $2,500 | $5,000 | As incurred | Before opening | Affiliate and various vendors |
| Office Supplies & | $100 | $550 | As incurred | As | Various |
| Misc. Expense | incurred | vendors | |||
| Advertising/Promotion/ Grand Opening Materials | $4,000 | $4,000 | As incurred | Before and after opening | Various vendors |
| Insurance (3 months)4 | $675 | $1,000 | As arranged | Before opening | Various vendors |
| Professional Fees5 | $2,500 | $3,500 | As arranged | Before opening | Professional advisors |
| Additional Funds (3 months)6 | $40,000 | $60,000 | As incurred | Before and after opening | Employees, other Expenses |
| TOTAL*: | $100,025 | $124,850 |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 20–22)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, the payment for the Marketing Starter Package is made to "Us," which refers to the franchisor. The cost of this package is a fixed amount, estimated to be $4,000, and is due at the signing of the Franchise Agreement. This is a lump sum payment, meaning the entire amount is paid at once.
This Marketing Starter Package is part of the initial investment required to start a Cinch I.T. franchise. It's important for prospective franchisees to factor this cost into their startup budget. Because the payment is made directly to the franchisor, franchisees should confirm exactly what the Marketing Starter Package includes and how it will benefit their business launch. Understanding the specifics of this package will help franchisees assess its value and plan their initial marketing efforts effectively.
It is also important to note that all payments made to Cinch I.T. are non-refundable. Therefore, a franchisee should fully understand the terms and conditions of the Franchise Agreement before signing and making any payments.