Does Cinch I.T. provide any financial performance representations in its FDD?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
We do not make any financial performance representation. We also do not authorize our employees or representatives to make any representations either orally or in writing. If you are purchasing an existing franchise, however, we may provide you with the actual records of that business. If you receive any other financial performance information or projections of your future income, you should report it to the franchisor's management by contacting our Managing Member, Richard Porter, Cinch Franchise, LLC, 27 West Mountain Street, Worcester, Massachusetts 01606, the Federal Trade Commission, and the appropriate state regulatory agencies.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD page 56)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, the franchisor does not make any financial performance representations. This means that Cinch I.T. does not provide any information about the actual or potential financial performance of its franchised or franchisor-owned outlets in Item 19.
This lack of financial performance data is a notable point for potential franchisees. Item 19 of the FDD is where franchisors typically disclose information about revenue, income, or profits that franchisees have achieved. Without this information, prospective franchisees must conduct their own independent research and due diligence to assess the potential profitability of a Cinch I.T. franchise.
The FDD states that Cinch I.T. does not authorize its employees or representatives to make any financial performance representations, either orally or in writing. However, if a prospective franchisee is purchasing an existing franchise, Cinch I.T. may provide the actual records of that business. The document also instructs candidates to report to Cinch I.T.'s management, the Federal Trade Commission, and appropriate state regulatory agencies if they receive any financial performance information or projections of future income from other sources.