What is the transfer fee for each open and operating Cinch I.T. Franchised Business?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
H I.T. Franchised Businesses before the effective date of transfer and will continue to remain responsible for Your obligations of nondisclosure, noncompetition and indemnification as provided in the Franchise Agreements and Guaranty Agreement, attached to this Agreement as Addendum C and shall sign any and all instruments reasonably requested by Us to further evidence this liability;
- (viii) You or Your approved transferee shall pay to Us, at the time of said transfer, a transfer fee ("Development Transfer Fee") equal to Five Thousand Dollars ($5,000.00) for each unopened CINCH I.T. Franchised Business to be transferred, and Ten Thousand Dollars ($10,000.00) for each CINC
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, the transfer fee for each open and operating Cinch I.T. franchised business is $10,000. This fee is payable at the time the franchisee notifies Cinch I.T. of their intent to transfer or assign the Franchise Agreement. The transfer or assignment must comply with the terms of each individual Cinch I.T. Franchise Agreement. This fee covers Cinch I.T.'s administrative and other expenses related to the transfer of the franchised business.
In addition to the transfer fee, the transferee must also meet Cinch I.T.'s then-current educational, managerial, and business standards. The transferee should possess a good moral character, business reputation, and credit rating. They should also have the aptitude and ability to operate the Cinch I.T. franchised business, as demonstrated by prior related experience or other means. The transferee must also have at least the same managerial and financial acumen required of new multi-unit developers and sufficient equity capital to operate the franchised business.
Cinch I.T. also has the option to require the transferee to sign the standard form of Franchise Agreement and Multi-Unit Development Agreement then being offered to new multi-unit developers. These agreements would supersede the original agreements and may have different terms, including the implementation of other fees. The original franchisee, their principals, and their affiliates will remain liable for all direct and indirect obligations to Cinch I.T. related to the franchised business before the transfer date. They will also continue to be responsible for obligations of nondisclosure, noncompetition, and indemnification as outlined in the Franchise Agreements and Guaranty Agreement.