What are the requirements for a Cinch I.T. franchisee to renew or extend their franchise term?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise or other agreement | Summary |
|---|---|---|
| a. Length of the franchise | Section 5 | Term is 5 years. |
| term | ||
| b. Renewal or extension of the term | Section 6 | If you are in good standing, you can renew for 3 successive 5 year terms. |
| c. Requirements for franchisee to renew or extend | Section 6 | Give timely notice, not in default, has not received 3 or more default notices in prior term, sign new agreement which may have materially different terms and |
| conditions | ||
| than your original | ||
| Franchise Agreement, | ||
| including territory and | ||
| royalty, sign release, | ||
| refresher training if required | ||
| by us, renewal fee equal to | ||
| $5,000. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 48–56)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, the initial franchise term is 5 years, and franchisees in good standing have the option to renew for three successive 5-year terms. To renew the franchise agreement, a Cinch I.T. franchisee must provide timely notice of their intent to renew. They must not be in default of the agreement at the time of renewal and must not have received three or more default notices during the prior franchise term.
Additionally, the franchisee will be required to sign a new franchise agreement, which may contain terms that are materially different from the original agreement. These changes could include modifications to territory and royalty obligations. The franchisee must also sign a release.
Furthermore, Cinch I.T. may require the franchisee to complete refresher training. Finally, the franchisee must pay a renewal fee of $5,000 to finalize the renewal process.