factual

Does the additional funds estimate for a Cilantro Taco Grill franchise include compensation to the franchisee?

Cilantro_Taco_Grill Franchise · 2024 FDD

Answer from 2024 FDD Document

15Additional Funds – 3 months. We relied on our affiliates' experience in operating Cilantro Taco Grill businesses in the Illinois area since 2013 when preparing this estimate. This is an estimate of the amount of additional operating capital that you may need to operate your Franchised Business during the first 3 months after commencing operations. We cannot guarantee that you will not incur additional expenses in starting the business that may exceed this estimate. This estimate includes such items as utilities, internet service, initial payroll and payroll taxes, Royalties (as described in this disclosure document), Worldwide Creative Marketing Fees, repairs and maintenance, bank charges, music fees, miscellaneous supplies and equipment, initial staff recruiting expenses, and other miscellaneous items. These estimates do not include any compensation to you, nor do they include debt service.

Source: Item 10 — Initial Inventory. This estimate is for the cost of the initial inventory sufficient for approximately 3 months of operation. Your initial inventory will include ingredients and supplies, containers, cleaning products, and other disposables. (FDD pages 21–22)

What This Means (2024 FDD)

According to the 2024 Cilantro Taco Grill FDD, the estimate for additional funds does not include compensation for the franchisee. The additional funds cover the first 3 months of operation and are an estimate of the operating capital a franchisee may need. Cilantro Taco Grill based this estimate on their affiliates' experience operating Cilantro Taco Grill businesses in Illinois since 2013.

The FDD specifies that the additional funds estimate includes items such as utilities, internet service, initial payroll and payroll taxes, royalties, Worldwide Creative Marketing Fees, repairs and maintenance, bank charges, music fees, miscellaneous supplies and equipment, and initial staff recruiting expenses.

It is important for prospective Cilantro Taco Grill franchisees to understand that this estimate does not include any compensation for themselves or debt service. The FDD advises franchisees to carefully review these figures with a business advisor before investing in the franchise, as actual costs can vary based on factors like management skills, local economic conditions, and the level of sales achieved during the initial period.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.