Does Cinch I.T. have the right to designate a single supplier for the Computer System?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
of our Franchise System.
Technology, Computer Hardware and Software
You must use the computer software and hardware components and accessories as further
detailed in Items 7 and 11 ("Computer System") that we require. We have the right to designate a single supplier for the Computer System. We have the right to appoint additional suppliers or different suppliers for the Computer System. We may require you to maintain service support contracts and/or maintenance service contracts and implement and periodically make upgrades and changes to the computer hardware and software, and credit card, debit card and other noncash payment systems. We may designate the vendor(s) for these support service contracts and maintenance service contracts.
Neither we nor our affiliates currently derive revenue from your purchase of the Computer System;
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 22–26)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, Cinch I.T. retains the right to designate a single supplier for the Computer System. The Computer System includes the computer software and hardware components and accessories that Cinch I.T. requires franchisees to use. Cinch I.T. also has the right to appoint additional or different suppliers for the Computer System.
Furthermore, Cinch I.T. may require franchisees to maintain service support contracts and/or maintenance service contracts and implement and periodically make upgrades and changes to the computer hardware and software, and credit card, debit card and other noncash payment systems. Cinch I.T. may also designate the vendor(s) for these support service contracts and maintenance service contracts.
The FDD states that neither Cinch I.T. nor its affiliates currently derive revenue from franchisee purchases of the Computer System; however, they are permitted and may do so in the future. This means that while franchisees may not currently pay Cinch I.T. or its affiliates directly for the Computer System, this could change, potentially impacting the franchisee's costs.