Can Cilantro Taco Grill charge a fee for inspecting and testing a potential unapproved supplier?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
- 12.1.7 Permit Franchisor or its agents, to inspect the Franchised Business location and any services, products or equipment, to determine whether they meet Franchisor's then-current standards, specifications and requirements.
In addition to any other remedies Franchisor may have, Franchisee shall reimburse Franchisor for Franchisor's inspection costs of any item that does not conform to the System standards and specifications;
Source: Item 23 — RECEIPT (FDD pages 52–208)
What This Means (2024 FDD)
According to the 2024 Cilantro Taco Grill Franchise Disclosure Document, Cilantro Taco Grill has the right to inspect the Franchised Business location, services, products, and equipment to ensure they meet the franchisor's standards. If any item fails to meet these standards, the franchisee is responsible for reimbursing Cilantro Taco Grill for the inspection costs.
This implies that if a franchisee uses a supplier not approved by Cilantro Taco Grill and the franchisor needs to inspect the products or equipment from that supplier to ensure compliance with system standards, the franchisee will have to cover the costs of this inspection. This policy ensures that franchisees adhere to the brand's quality and standards, even when sourcing from alternative suppliers.
Therefore, while the FDD does not explicitly state a fee for inspecting and testing a potential unapproved supplier, it does state that Cilantro Taco Grill can charge a franchisee for inspection costs if products or equipment do not conform to system standards. This could include situations where a franchisee is using an unapproved supplier, effectively allowing Cilantro Taco Grill to pass on the costs associated with ensuring compliance.