Does Armando Perez, also known as Pitbull, have any financial investment in Cilantro Taco Grill?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
In exchange for the right to use Armando Perez (aka "Pitbull")'s name to promote our franchise, we have an agreement with Armando Perez and his management company to pay a portion (currently half) of the Worldwide Creative Marketing Fee, as well as dividends and a minority percentage of the sale price in the event we are sold. Armando Perez did not make any financial investment in us, is not involved in our management and does not have any control over our operations.
Source: Item 18 — PUBLIC FIGURES (FDD page 48)
What This Means (2024 FDD)
According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, Armando Perez (aka "Pitbull") does not have any financial investment in Cilantro Taco Grill. However, the company has an agreement with Armando Perez and his management company that allows Cilantro Taco Grill to use his name to promote the franchise.
In exchange for the use of his name, Cilantro Taco Grill pays a portion (currently half) of the Worldwide Creative Marketing Fee to Armando Perez and his management company. They also receive dividends and a minority percentage of the sale price if Cilantro Taco Grill is sold.
Despite this agreement, Armando Perez is not involved in the management of Cilantro Taco Grill and does not have any control over its operations. This arrangement is common in franchising, where brands partner with celebrities to increase brand awareness and attract customers, without necessarily granting them ownership or control.