What is the purpose of Addendum B to the Cinch I.T. Franchise Agreement?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
- 5.3 You acknowledge that the projected opening dates ("Projected Opening Dates") for each CINCH I.T. Franchised Business set forth on Addendum B are reasonable and consistent with the requirements of the Development Schedule. You shall execute a Franchise Agreement for each CINCH I.T. Franchised Business at or prior to the applicable execution deadline ("Execution Deadline") set forth on Addendum B. The Parties agree that, except with respect to the Franchise Agreement executed concurrently herewith, the Execution Deadline shall be a date no later than six (6) months prior to the Projected Opening Date for each subsequent CINCH I.T. Franchised Business to be developed.
We possess certain proprietary Confidential Information consisting of the Marks, the Intellectual Property, Our System Standards, and other methods, techniques, formats, specifications, procedures, information, systems, methods of business management, sales and promotion techniques and knowledge of and experience in the operation and franchising of CINCH I.T. franchised businesses (the "Confidential Information"). Except to the extent prohibited by the laws of the state where the Franchised Business is located or where the employee lives or works, every Key Employee must sign a non-disclosure, non-solicitation and non-competition agreement in a form approved by Us or as We otherwise provide. You must provide a copy of each Key Employee's signed non-disclosure, non-solicitation and non-competition agreement to Us prior to such Key Employee beginning employment, providing services or participating in Our Initial Training Program and/or prior to Your disclosing Our Confidential Information to such Key Employee.
You represent and warrant that each of the individuals designated in Addendum B will at all times abide by the System Standards of Our System, this Agreement, and the Licensed Rights; that You will at all times assume personal responsibility for their continued compliance with those System Standards; and that You will promptly notify Us if any of them shall at any time during the Term of this Agreement divest themselves of ownership, partnership, membership, employment, or contractual obligations as the case may be, with You. You shall amend Addendum B and submit the amended Addendum to Us whenever there is any change in Your list of Key Employees. We reserve the right to require certain individuals to be included in Your list of Key Employees.
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to the 2024 Cinch I.T. Franchise Disclosure Document, Addendum B to the Development Agreement outlines the development schedule for multi-unit developers. This schedule specifies the number of Cinch I.T. franchised businesses the developer is expected to establish.
The addendum also lists the projected opening dates for each Cinch I.T. location and the deadlines for executing the individual Franchise Agreements for each business. Cinch I.T. requires that the Franchise Agreement be signed no later than six months before the projected opening date. These projected opening dates are acknowledged as reasonable and consistent with the requirements of the Development Schedule.
Furthermore, Addendum B is used to list the Key Employees who will be responsible for operating the Franchised Business according to Cinch I.T.'s System Standards. The franchisee must notify Cinch I.T. and amend Addendum B whenever there is a change in the list of Key Employees. Cinch I.T. retains the right to require certain individuals to be included in the Key Employees list.