From whom might Cinch I.T. require me to obtain covenants similar to those in Section 11?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
- 11.8 At Our request, You shall require and obtain execution of covenants similar to those set forth in this Section 11 (including covenants applicable upon the termination of a person's relationship with You) from any or all of the following persons: (a) all directors and managers of each CINCH I.T.
Franchised Business; (b) all officers, directors and holders of a beneficial interest of five percent (5%) or more of the securities of Multi-Unit Developer and of any corporation directly or indirectly controlling Multi-Unit Developer if You are a corporation; and (c) the members or general partners and any limited partners (including any corporation, and the officers, directors and holders of a beneficial interest of five percent (5%) or more of the securities of any corporation which controls, directly or indirectly, any general or limited partner) if You are a limited liability company or partnership.
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, Cinch I.T. can request that franchisees obtain covenants similar to those in Section 11 from specific individuals and entities. These include all directors and managers of each Cinch I.T. Franchised Business.
If the franchisee is a corporation, Cinch I.T. may require covenants from all officers, directors, and holders of a beneficial interest of five percent (5%) or more of the securities of a Multi-Unit Developer, as well as from any corporation directly or indirectly controlling the Multi-Unit Developer.
If the franchisee is a limited liability company or partnership, Cinch I.T. may require covenants from the members or general partners and any limited partners. This extends to any corporation, including its officers, directors, and holders of a beneficial interest of five percent (5%) or more of the securities of any corporation which controls, directly or indirectly, any general or limited partner.