What is the requirement for opening each Cinch I.T. Franchised Business?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
6. FRANCHISE AGREEMENT
You shall not commence opening any CINCH I.T. Franchised Business until the individual Franchise Agreement for said CINCH I.T. Franchised Business has been signed by both the Multi-Unit Developer, or its affiliate, and Franchisor.
7. DEFAULT AND TERMINATION
You shall be in default under this Agreement should You (or Your affiliate): (a) fail to comply with the Development Schedule; (b) fail to perform any of Your obligations under this Agreement or any individual Franchise Agreement; (c) cease to be a Franchisee of Franchisor in good standing; or (d) fail to comply with the provisions on transfer contained herein.
Upon the default, We shall have the right, at Our option, and in Our sole discretion, to do any or all of the following:
- 7.1 terminate this Agreement;
- 7.2 terminate the territorial rights granted to You; or
- 7.3 reduce the size of Your Development Area or the number of CINCH I.T. Franchised Businesses You may develop in the Development Area.
In addition, if any individual Franchise Agreement issued to You or an approved affiliate of Yours, whether or not issued pursuant to this Agreement, is terminated for any reason, We shall have the right to terminate this Agreement on immediate written notice to You. Upon termination or expiration of the term of this Agreement, this Agreement shall be of no further effect, and We shall have the right to open, or license others to open, CINCH I.T. Businesses within the Development Area. For purposes of this Section 7, any Franchise Agreement issued by Us to You or Your approved affiliates, or any corporation, limited liability company, partnership or joint venture, in which You or Your affiliates, or any stockholder, member, partner or joint venturer of Yours or Your affiliates, has any direct or indirect ownership or participation interest, shall be deemed a Franchise Agreement issued to You.
**8.
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, a franchisee cannot commence opening a Cinch I.T. Franchised Business until the individual Franchise Agreement for said Cinch I.T. Franchised Business has been signed by both the Multi-Unit Developer, or its affiliate, and Franchisor. The franchisee must also adhere to the Development Schedule, including any extensions approved by Cinch I.T.
Prior to the Projected Opening Date for a Cinch I.T. Franchised Business, the franchisee must notify Cinch I.T. in writing at least thirty (30) days in advance if they will be unable to commence operation of the Cinch I.T. Franchised Business by the expiration date of the Development Period. This notice should include a request for an extension, reasons for the delay, the expected opening date if the extension is granted, and payment of the Extension Fee if required.
Failure to adhere to the Development Schedule, including any approved extensions, constitutes a material event of default under the agreement. The franchisee must also execute a Franchise Agreement for each Cinch I.T. Franchised Business at or prior to the applicable execution deadline, which is no later than six (6) months prior to the Projected Opening Date for each subsequent Cinch I.T. Franchised Business to be developed.