As of the date of the Disclosure Document, has Cilantro Taco Grill created any purchasing arrangements with suppliers?

According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, as of the date of the document, Cilantro Taco Grill has not created any purchasing arrangements with suppliers. However, the document indicates that Cilantro Taco Grill may negotiate purchase arrangements, including price terms, with designated and approved suppliers on behalf of all franchisees in the future.

Cilantro Taco Grill franchisees are required to purchase equipment, fixtures, inventory, supplies, and services from designated suppliers and contractors or in accordance with Cilantro Taco Grill's specifications. The FDD states that Cilantro Taco Grill has identified various suppliers, distributors, and manufacturers of equipment, inventory, and services that the Franchised Business must use or provide which meet their standards and requirements.

Cilantro Taco Grill estimates that purchases from approved suppliers will represent approximately 70-80% of the costs to establish the Franchised Business and approximately 30-40% of the costs for ongoing operation. While there are currently no purchasing or distribution cooperatives, Cilantro Taco Grill can require franchisees to make purchases through a cooperative if one is formed in the future. Cilantro Taco Grill also has the right to collect and retain any allowances, rebates, credits, incentives, or benefits offered by manufacturers, suppliers, and distributors based upon a franchisee's purchases.