Upon what is the grant of a Cinch I.T. Designated Territory expressly conditioned?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
eive an automatic the right to acquire additional franchises within your Territory.
Minimum Performance Standards
The grant of your designated Territory is expressly conditioned upon your successful penetration of the market in the Designated Territory. You must promote actively and aggressively the products and services of your CINCH I.T. Franchised Business within your Designated Territory.
If you do not sell one new managed service provider ("Managed Service Provider" or "MSP") contract for 3 consecutive months, we will require you to undertake and complete a performance improvement plan ("Plan") over a consecutive 3 month period. The Performance Improvement Plan consists of a list of activity metrics assigned by us that must be performed by you each week. You must also attend a weekly accountability telephone conference to review the assigned metrics and your results. You will be charged in one hour increments at our then-current rate for remedial training for each accountability conference. If after completion of the Plan you do not sell one new MSP contract within 3 months, you will be in default of your Franchise Agreement and we may we may terminate the Franchise Agreement.
As fully detailed in our confidential Operations Manual, a Managed Services Contract is a Technology Support Plan that offers Support, Proactive Maintenance, a Cybersecurity Suite of Services and Consultation.
Source: Item 12 — TERRITORY (FDD pages 39–43)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, the grant of a designated territory is expressly conditioned upon the franchisee's successful penetration of the market within that territory. This means a franchisee must actively and aggressively promote Cinch I.T.'s products and services within their designated area.
Cinch I.T. requires franchisees to meet minimum performance standards to maintain their territorial rights. Specifically, if a franchisee does not sell one new managed service provider (MSP) contract for three consecutive months, Cinch I.T. will require them to undertake and complete a performance improvement plan (PIP) over a consecutive three-month period.
The PIP consists of a list of activity metrics assigned by Cinch I.T. that the franchisee must perform each week, along with attending a weekly accountability telephone conference to review the assigned metrics and results. The franchisee will be charged for remedial training for each accountability conference in one-hour increments at Cinch I.T.'s then-current rate. If, after completing the PIP, the franchisee still does not sell one new MSP contract within three months, they will be in default of their Franchise Agreement, and Cinch I.T. may terminate the agreement. A Managed Services Contract is a Technology Support Plan that offers Support, Proactive Maintenance, a Cybersecurity Suite of Services and Consultation. The Support Plans are priced per user and have a minimum of 10 users.