During the term of the Development Agreement, where can a franchisee operate a Cinch I.T. business office?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
re not a "joint employer" for the reasons cited above.
Item 12 TERRITORY
Multi-Unit Development Agreement
Under the Development Agreement, you will receive a Development Area, which will be mutually agreed upon by us and you. A description of the Development Area will be attached as Addendum A to the Multi-Unit Development Agreement. The Development Area will be determined by the number of franchises agreed upon multiplied by the Designated Territory business population each containing an approximate of 3,000 to 3,500 qualified businesses as defined below. By example a Development Area for four franchises would contain a business population of 12,000 to 14,000 qualified businesses. Once a Development Area is granted you may not relocate any franchised business.
The Development Agreement is not a license or franchise agreement. It does not give you the right to operate a CINCH I.T. franchised business or use the System or the Marks, nor does it give you any right to license others to operate CINCH I.T. businesses. The Development Agreement does not provide a right of first refusal nor similar right to obtain additional franchises within your Development Area.
We will not franchise or license others to use the Licensed Rights, nor will we develop, own or
operate a CINCH I.T. business office, in any Designated Territory identified as part of the Development Area during the term of the Development Agreement. We reserve the right to sell products and services under the Marks or any other marks, through any other channels of distribution, including the Internet. We also reserve the right to (a) establish, operate or license to any other person or entity the right to establish or operate a CINCH I.T. Business at any location outside the Development Area; (b) develop, lease and license the use of, at any location inside or outside of the Development Area, trademarks other than the Marks, in connection with the operation of a system which offers products or services which are similar to or different from those offered under the System, on any terms or conditions which we deem advisable; (c) merge with, acquire or be acquired by any other business, including a business that competes with the CINCH I.T. Franchised Businesses operated by you, whether located inside or outside of the Development Area; (d) acquire any information technology support business operated by competitors, or operated independently as part of, or in association with, any other system or chain, whether franchised or corporately owned, and convert it to the CINCH I.T. System inside or outside of the Development Area; and (e) implement multi-area marketing programs which may allow us, our affiliates or other CINCH I.T.
Source: Item 12 — TERRITORY (FDD pages 39–43)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, the Development Agreement does not grant the right to operate a Cinch I.T. franchised business. The Development Agreement allows the franchisee to secure a Development Area, which is determined by multiplying the number of franchises agreed upon by the Designated Territory business population, with each territory containing approximately 3,000 to 3,500 qualified businesses.
The Franchise Agreement dictates where a franchisee can operate a Cinch I.T. business office. A franchisee may operate the business office from their home at any location without needing prior permission from Cinch I.T. However, if operating from home, the franchisee must secure a virtual address within their Designated Territory for website listing, search engine optimization, and all franchise business-related purposes.
If a franchisee chooses to operate their Cinch I.T. business from a commercial property, such as leased office space, the business office must be located within the Designated Territory. The franchisee does not need permission from Cinch I.T. before relocating, provided the leased or purchased office remains within the Designated Territory. The franchisee must notify Cinch I.T. of any relocation or address change at least 7 days prior to the move.
It is important to note that Cinch I.T. grants a Designated Territory with an approximate business population of 3,000 to 3,500 qualified businesses, defined as those with 10 or more employees, identified by a database of business establishments and employment. The size and population density of the Designated Territory can vary depending on the demographic information and business population density of the area. For example, a territory could range from a city in an urban location to a county in a more suburban area.