What power does Cinch I.T. have regarding Advertising Cooperatives?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
- (i) We have the power to require Advertising Cooperatives to be formed, changed, dissolved or merged.
If an Advertising Cooperative is established, We may designate a geographic area in which three or more Franchised Businesses are located as an area in which to establish an Advertising Cooperative.
The Advertising Cooperative's members will include all CINCH I.T.
businesses operating in the geographic area, including Us and Our affiliates, if applicable. We may also require that You join an existing Advertising Cooperative operating in a geographic area encompassing or near Your Franchised Business. We will determine how any Advertising Cooperative is organized and governed, but the Advertising Cooperative's members are responsible for its administration and determination of contribution levels. All Advertising Cooperatives will be governed by written documentation generated and/or designated by Us. If an advertising cooperative is established Your participation will be funded from Your local advertising contribution. The terms of the cooperative advertising will be established by Us at the time it is established. Funds contributed to an Advertising Cooperative will not be utilized to solicit new franchise sales.
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to the 2024 Cinch I.T. Franchise Disclosure Document, Cinch I.T. has significant authority over Advertising Cooperatives. Cinch I.T. reserves the right to mandate the formation, modification, dissolution, or merging of these cooperatives. If Cinch I.T. establishes an Advertising Cooperative, they may designate a geographic area encompassing three or more Franchised Businesses as the area for the cooperative.
All Cinch I.T. businesses operating within the designated geographic area, including Cinch I.T. and its affiliates if applicable, will be members of the Advertising Cooperative. Cinch I.T. may also require a franchisee to join an existing Advertising Cooperative that operates in an area near the Franchised Business.
Cinch I.T. determines how the Advertising Cooperative is organized and governed. However, the cooperative's members are responsible for its administration and deciding on contribution levels. All Advertising Cooperatives must adhere to written documentation generated or designated by Cinch I.T. A franchisee's participation in the cooperative will be funded from their local advertising contribution, and Cinch I.T. establishes the terms of the cooperative advertising when it is created. Funds contributed to an Advertising Cooperative cannot be used to solicit new franchise sales.