Which agreements related to Cilantro Taco Grill franchises are amended to include a statement regarding representations requiring prospective franchisees to assent?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
EXHIBIT H FRANCHISEE ACKNOWLEDGEMENT STATEMENT
As you know, CTG Franchise LLC (the "Franchisor") and you are preparing to enter into a franchise agreement (the "Franchise Agreement") for the establishment and operation of a Cilantro Taco Grill franchised business (the "Franchised Business"). The purpose of this Questionnaire is to determine whether any statements or promises were made to you by employees or authorized representatives of the Franchisor, or by employees or authorized representatives of Fransmart, LLC ("Fransmart") that have not been authorized, or that were not disclosed in the Disclosure Document or that may be untrue, inaccurate or misleading. The Franchisor, through the use of this document, desires to ascertain (a) that the undersigned, individually and as a representative of any legal entity established to acquire the franchise rights, fully understands and comprehends that the purchase of a franchise is a business decision, complete with its associated risks, and (b) that you are not relying upon any oral statement, representations, promises or assurances during the negotiations for the purchase of the franchise which have not been authorized by Franchisor.
Source: Item 23 — RECEIPT (FDD pages 52–208)
What This Means (2024 FDD)
According to the 2024 Cilantro Taco Grill Franchise Disclosure Document, the agreements are amended to include a statement regarding representations requiring prospective franchisees to assent. Specifically, the Franchisee Acknowledgement Statement is used to confirm that the franchisee understands the purchase of a franchise is a business decision with associated risks.
This statement ensures that franchisees are not relying on unauthorized oral statements, representations, promises, or assurances made during negotiations. Cilantro Taco Grill aims to verify that franchisees comprehend the risks involved and are making informed decisions based on authorized information.
By including this acknowledgement, Cilantro Taco Grill seeks to protect itself from potential claims that franchisees were misled by unauthorized representations. This is a common practice in franchising to ensure transparency and to document that franchisees have not relied on any information outside of the official Franchise Disclosure Document and authorized communications.