How does Cinch I.T. satisfy its obligations when exercising rights reasonably or in good faith?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
Internet Website due to causes beyond Our control or which are not reasonably foreseeable by Us, including, but not limited to, interruption or failure of telecommunication or digital transmission links and Internet slow-downs or failures.
In the event of any loss or interruption of the CINCH I.T.
Internet Website, Our sole and exclusive liability shall be only for loss or interruption due to (i) causes resulting from Our failure to maintain and/or repair the Website, (ii) other causes exclusively within Our control, or (iii) causes reasonably foreseeable by the Us, and which loss or interruption of the CINCH I.T.
Internet Website exceeds a continual period of twenty-four (24) hours.
Your sole and exclusive remedy shall be a credit against future Software Fees required by Us, if any, equal to a pro rata portion of said Software Fees for the period of downtime;
- (k) We shall have no liability for unauthorized access to, or alteration, theft, or destruction of, the Website or Your data files, programs, or information, if any, through accident, fraudulent means or devices.
We shall have no liability with respect to Our obligations under this Agreement or otherwise for consequential, exemplary, special, incidental, or punitive damages even if We have been advised of the possibility of such damages;
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
Based on the 2024 Cinch I.T. Franchise Disclosure Document, the franchisor's liability is limited in specific situations, particularly those related to the Internet Website. Cinch I.T. is not liable for interruptions or failures of the website that are beyond their control or not reasonably foreseeable. This includes issues with telecommunication links, digital transmission, and general internet slowdowns.
However, Cinch I.T. does assume liability for losses or interruptions of the website if they result from (i) failure to maintain or repair the website, (ii) causes exclusively within their control, or (iii) causes reasonably foreseeable by them, and only if the interruption exceeds a continuous period of 24 hours. In such cases where Cinch I.T. is liable, the franchisee's sole remedy is a credit against future Software Fees, prorated for the downtime period.
Furthermore, Cinch I.T. is not liable for unauthorized access, alteration, theft, or destruction of the website or the franchisee's data files due to accidents or fraudulent means. The franchisor is also not liable for consequential, exemplary, special, incidental, or punitive damages, even if they have been advised of the possibility of such damages. This indicates that Cinch I.T. aims to limit its financial exposure in various operational scenarios, particularly those involving technology and data security.
For a prospective Cinch I.T. franchisee, this means understanding that the franchisor's responsibility for website-related issues is capped, and the primary recourse is a credit against software fees rather than monetary compensation for broader business losses. Franchisees should assess their reliance on the Cinch I.T. website for their operations and consider the potential impact of extended downtime, as well as the limitations on liability for data breaches or other damages.