Is Cinch I.T. responsible for the safety and security of a franchisee's employees or patrons?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
t You will at all times faithfully, honestly and diligently perform Your obligations hereunder and that You will not engage in any business or other activities that will conflict with Your obligations hereunder or Your CINCH I.T. Franchise.
- (j) You have the sole responsibility for the performance of all obligations arising out of the operation of the Franchised Business pursuant to this Agreement. You shall secure and maintain in force, at Your expense, all required licenses, permits and certificates relating to the full and proper operation of the Franchised Business and shall operate the Franchised Business in full compliance with all applicable laws, ordinances and regulations, including without limitation, zoning, access, signage, all employment laws and government regulations relating to occupational hazards and health, fire, safety, consumer protection, equal opportunity, trade regulation, workers' compensation, unemployment insurance, licenses to do business, sales tax permits, taxes and other withholdings and payment when due of any and all taxes levied or assessed by reason of the operation of the Franchised Business, and fictitious name filings and registrations, privacy laws and data protection or security laws as well as Payment Card Industry Data Security Standard (PCI DSS) compliance.
- (k) During the term of this Agreement, and any renewals or extensions hereof, You shall hold Yourself out to the public only as an independent contractor operating the Franchised Business pursuant to a Franchise Agreement with Us. You agree to take such affirmative actions as may be necessary to do so, including without limitation exhibiting a public notice of that fact, the content and display of which We shall have the right to specify from time to time.
- (l) It is the express intention of Subsections (j) and (k) of this Section 10 to establish that You are an independent contractor, and as such are solely responsible for the day-to-day affairs, management, operations and financial control of the Franchised Business and for Your employees and Your treatment of them.
- (m) We shall have the right to establish and utilize an on-line computer monitoring system, and to use the on-line system to remotely examine Your records pertaining to the operation of the Franchised Business. We may require that You utilize e-commerce products or services as designated in the Operations Manual.
- (n) You shall not establish a website on the Internet using any domain name containing the words CINCHIT.com, .net, .biz, .us, .org or any variation. We retain the sole right to control all Internet activity and create websites using any of the foregoing or other domain names.
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to the 2024 Cinch I.T. Franchise Disclosure Document, the franchisee is primarily responsible for the safety and security of their employees. Cinch I.T. requires franchisees to operate their business in compliance with all applicable laws and regulations, including those related to occupational hazards, health, fire, and safety. This indicates that franchisees are expected to take the necessary precautions to ensure a safe environment for their employees and customers.
Cinch I.T. mandates that franchisees conduct reasonable background checks on all employees before hiring them and maintain records of this information. Franchisees are restricted from employing individuals convicted of felonies or those who engage in misconduct that could harm the business's reputation. These stipulations suggest that Cinch I.T. places importance on the franchisee's role in ensuring a safe and secure environment by carefully screening and managing their employees.
While Cinch I.T. offers advice and assistance on various aspects of the business, including employee training, the FDD explicitly states that the franchisee is an independent contractor solely responsible for the day-to-day management, operations, and financial control of the franchised business, including the treatment of their employees. This reinforces the franchisee's direct responsibility for maintaining safety and security within their Cinch I.T. business.