What rights does a Cinch I.T. franchisee have within their Designated Territory?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
any advertising/marketing material that We have disapproved for any of the reasons set forth in this Section.
- (d) You shall adopt and use CINCH I.T. Licensed Rights only in the manner expressly approved by Us.
4. TERRITORY
- (a) You shall have the right to operate a CINCH I.T. Franchised Business, and to use the Licensed Rights in a Designated Territory that contains an approximate business population of three thousand (3,000) to three thousand five hundred (3,500) businesses defined as businesses with ten (10) or more employees. The businesses in Your Designated Territory will be determined by a review of any combination of records of business establishments and agencies or commissions which track business population count in Your Designated Territory. We will not grant to others (nor reserve unto ourselves except as specified in this Agreement) the right to operate a CINCH I.T. business within Your Designated Territory.
- (b) We reserve the right to use and franchise within Your Designated Territory any other trade names and trademarks that We might develop and not designate as Licensed Rights in the future, for use with similar or different franchise systems. You are granted no automatic rights to acquire additional franchises within Your Designated Territory, or within any contiguous territories.
- (c) Notwithstanding the provisions of the above Subsection 4(a), We specifically reserve the right to develop, grant, license or use additional distribution methods for the sale of Our trademarked merchandise, including wholesalers and retailers within Your Designated Territory.
- (d) As long as You are in compliance with all terms and conditions of this Agreement, We may not otherwise alter Your Designated Territory, as it is defined in this Agreement, and as it is more specifically identified in Addendum A to this Agreement.
(e) You agree that You will not actively advertise or market for clients outside of Your Designated Territory without Our prior written approval. We do not restrict You from passively attracting clients from outside Your Designated Territory and likewise We do not restrict other franchisees from passively attracting clients from outside their designated territory which may include Your Designated Territory. In addition, with Our prior written permission, You may attend national, regional or extra-territorial tradeshows, meetings and events anywhere, including territories owned by other franchisees, however, You cannot actively use telemarketing, direct marketing or other channels of distribution to advertise outside of Your Designated Territory unless specifically authorized in the Operations Manual or in written communication from Us.
Except for the limitations on advertising and marketing outside of Your Designated Territory, You have no restrictions on who Your clients are or where they come from. You may accept business from outside of Your Territory without permission or special payment.
5. TERM
The term of this Agreement shall commence on the date first set forth above and shall continue for a term expiring upon the date five (5) years following, unless earlier terminated pursuant to the terms of Section 32 of this Agreement.
6. RENEWAL
You may renew the franchise to own and operate the Franchised Business and the right to use the Licensed Rights for three (3) additional successive five (5) year terms;
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 has the right to operate a Cinch I.T. Franchised Business and use the Licensed Rights in a Designated Territory. This territory contains an approximate business population of 3,000 to 3,500 businesses, defined as those with ten or more employees. Cinch I.T. will not grant others the right to operate a Cinch I.T. business within the franchisee's Designated Territory, although Cinch I.T. does reserve some rights for themselves.
Cinch I.T. reserves the right to use and franchise other trade names and trademarks they might develop in the future, which are not designated as Licensed Rights, within the franchisee's Designated Territory. The franchisee is not automatically granted rights to acquire additional franchises within their Designated Territory or any adjacent territories. Cinch I.T. also reserves the right to develop, grant, license, or use additional distribution methods for selling their trademarked merchandise, including wholesalers and retailers, within the franchisee's Designated Territory.
As long as the franchisee complies with the agreement terms, Cinch I.T. may not alter the Designated Territory. The franchisee agrees not to actively advertise or market for clients outside their Designated Territory without prior written approval from Cinch I.T. However, the franchisee is not restricted from passively attracting clients from outside their Designated Territory, and other franchisees are also not restricted from passively attracting clients from outside their territories, which may include the franchisee's Designated Territory. With prior written permission, a franchisee may attend national, regional, or extra-territorial tradeshows, meetings, and events anywhere, including territories owned by other franchisees. However, they cannot actively use telemarketing, direct marketing, or other channels to advertise outside their Designated Territory unless specifically authorized in the Operations Manual or in writing from Cinch I.T.
Unless specifically permitted in writing, a franchisee's local advertising is limited to approved social media, direct marketing, targeted print and broadcast media, speaking engagements, networking events, and other activities designed to solicit business only within their Designated Territory. If the Designated Territory lies within an Area of Dominant Influence (ADI) or Designated Market Area (DMA) of media sources outside of the territory, and if other franchisee- or franchisor- or affiliate-owned units lie within the same ADI, Cinch I.T. reserves the right to require the franchisee and other franchisees to cooperate and participate in advertising through that media source on a cooperative basis.