What is the acceptable method of payment for the Cilantro Taco Grill development fee?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Expenditure | Amount | Method of |
|---|---|---|
| Payment | ||
| Development Fee for 5 Outlets1 | $140,000 | Lump sum payment in cash or available funds |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 18–21)
What This Means (2024 FDD)
According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, the acceptable method of payment for the development fee is a lump sum payment in cash or available funds. This payment of $140,000 is due upon signing the Multi-Unit Operator Agreement and is paid directly to Cilantro Taco Grill. This fee is for the development of 5 outlets.
The Development Fee will increase if the franchisee commits to develop more than 5 Franchised Businesses. If the franchisee commits to open between 6 and 9 Franchised Businesses, then the Development Fee will increase by $17,500 for each additional Franchised Business. If the franchisee commits to open 10 or more Franchised Businesses, then the Development Fee will be $262,500 for 10 Restaurants and will increase by $17,500 for each additional Franchised Business the franchisee commits to open.
It is important to note that this development fee is separate from other expenditures required to open a Cilantro Taco Grill franchise. The FDD estimates other expenditures for the first franchised business to be between $238,000 and $695,800. These expenditures cover costs such as rent, leasehold improvements, equipment, and initial inventory. The total estimated initial investment, including the development fee, ranges from $378,000 to $835,800.