What are the conditions that must be met before a Multi-Unit Operator can open a Cilantro Taco Grill restaurant?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
All of the following conditions must be satisfied or waived, in Franchisor's sole discretion, before Franchisor grants Multi-Unit Operator the right to develop an additional Cilantro Taco Grill outlet in accordance with Section 4.1 hereof and pursuant to a Franchise Agreement:
- 5.4.1 Multi-Unit Operator shall (i) request and timely execute receipt of Franchisor's then-current Franchise Disclosure Document, (ii) submit to Franchisor all information and other documents requested by Franchisor prior to and as a basis for the issuance of Franchise Agreements in the
System, (iii) submit to Franchisor all financial statements reasonably requested by Franchisor, and (iv) satisfy Franchisor's then-current financial criteria for multi-unit franchisees.
5.4.2 Multi-Unit Operator shall be in full compliance with this Agreement, the Mandatory Development Schedule, and all Franchise Agreements with Franchisor and any other agreement with Franchisor or Franchisor's affiliates;
5.4.3 Multi-Unit Operator has demonstrated the management skills necessary for competent operation, organization, customer service and record keeping of an additional Cilantro Taco Grill outlet as determined by Franchisor, in Franchisor's sole discretion.
Source: Item 23 — RECEIPT (FDD pages 52–208)
What This Means (2024 FDD)
According to the 2024 Cilantro Taco Grill Franchise Disclosure Document, a Multi-Unit Operator must satisfy several conditions before being granted the right to develop an additional Cilantro Taco Grill outlet. These conditions are subject to Cilantro Taco Grill's discretion.
First, the Multi-Unit Operator must request and timely execute receipt of Cilantro Taco Grill's current Franchise Disclosure Document. They must also submit all requested information and documents, including financial statements, and meet Cilantro Taco Grill's current financial criteria for multi-unit franchisees. This ensures that the operator is both informed and financially capable of expanding their operations.
Second, the Multi-Unit Operator must be in full compliance with the Multi-Unit Operator Agreement, the Mandatory Development Schedule, all existing Franchise Agreements with Cilantro Taco Grill, and any other agreements with Cilantro Taco Grill or its affiliates. This emphasizes the importance of adhering to all contractual obligations and maintaining a good standing with the franchisor.
Finally, the Multi-Unit Operator must demonstrate the necessary management skills for competent operation, organization, customer service, and record keeping of an additional Cilantro Taco Grill outlet, as determined solely by Cilantro Taco Grill. This condition underscores the franchisor's focus on ensuring that operators have the capabilities to successfully manage and grow their Cilantro Taco Grill business.