How might the boundaries of a Cilantro Taco Grill territory be described?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
Under the Franchise Agreement, you have the right to establish and operate one Cilantro Taco Grill outlet within a territory that will be defined after the location of your Cilantro Taco Grill outlet is identified and approved by us (the "Territory"). You are required to find and obtain possession of a specific location for your Franchised Business that meets our site selection criteria and our approval. The boundaries of your Territory may be described in terms of zip codes, streets, landmarks (both natural and man-made) or county lines, or otherwise delineated on a map attached to the Data Sheet.
Unit franchisees and multi-unit operators will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
The Territory is determined on an individual basis taking into account geographic area, population density, character of neighborhood, location and number of competing business in the surrounding area, and other factors. There is no minimum territory size for a given Territory, and the exact size of each Territory we award varies based on the factors we have identified; however, a typical Territory might cover a geographical area that consists of: (a) up to a 2-mile radius surrounding your location if your location is in a suburban market area; (b) up to a 1/4-mile radius surrounding your location if your location is in a metropolitan area, downtown area, urban market area, central business district or other area with similar population density; or (c) the Non-Traditional Site. If the Franchised Business is located in a gas station or convenience store; transportation facility, including airport, train station, subway or rail or bus station; military base or government office; sports facility, including stadium or arena; amusement park, zoo or convention center; car or truck rest stop or travel center; educational facility; recreational theme park; hospital; business or industrial foodservice venue; venue in which foodservice is or may be provided by a master concessionaire or contract foodservice provider; Indian reservation; casino; or any similar captive market location ("Non-Traditional Site"), you will not receive a Territory. Furthermore, you understand and acknowledge that if any Non-Traditional Site (as described above) is located within the physical boundaries of your Territory, then the premises of this Non-Traditional Site will not be included in the Territory and you will have no rights to this Non-Traditional Site.
Source: Item 12 — TERRITORY (FDD pages 33–35)
What This Means (2024 FDD)
According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, the territory granted to a franchisee is defined after the location of their Cilantro Taco Grill outlet is identified and approved. The boundaries of the territory may be described using various methods, including zip codes, streets, landmarks (both natural and man-made), or county lines. These boundaries may also be delineated on a map attached to the Data Sheet. However, unit franchisees and multi-unit operators should note that the territory granted is not exclusive, meaning they may face competition from other franchisees, outlets owned by Cilantro Taco Grill, or other distribution channels and competitive brands controlled by the company.
The size of a Cilantro Taco Grill territory is determined on an individual basis, considering factors such as geographic area, population density, the character of the neighborhood, and the number of competing businesses in the surrounding area. For locations in suburban market areas, a typical territory might cover up to a 2-mile radius. In more densely populated areas like metropolitan, downtown, or urban market areas, this radius may be reduced to up to a 1/4-mile.
Notably, if a Cilantro Taco Grill franchise is located in a non-traditional site such as a gas station, airport, military base, or amusement park, the franchisee will not receive a territory. Furthermore, if a non-traditional site falls within the physical boundaries of a franchisee's territory, the premises of that non-traditional site will not be included in the territory, and the franchisee will have no rights to it. These conditions highlight the importance of carefully evaluating the location and its potential territory before committing to a Cilantro Taco Grill franchise.