Is Cilantro Taco Grill allowed to unreasonably withhold consent to a transfer of a Cilantro Taco Grill outlet in Minnesota?

According to the 2024 Cilantro Taco Grill Franchise Disclosure Document, Cilantro Taco Grill will not unreasonably withhold consent to a transfer of a Cilantro Taco Grill outlet in Minnesota. This statement is made within the context of Item 23, which addresses receipts and franchise relationship laws in Minnesota.

This provision protects franchisees by ensuring they are not unfairly restricted from selling their business to a qualified buyer. It means that Cilantro Taco Grill must have a legitimate, justifiable reason if they deny a franchisee's request to transfer their outlet.

However, it's important to note that Cilantro Taco Grill still has the right to approve or disapprove a transfer based on reasonable criteria. These criteria typically include the proposed buyer's financial stability, business experience, and willingness to adhere to the franchise agreement and brand standards. A prospective franchisee should inquire about the specific conditions under which a transfer might be denied to fully understand their rights and obligations.