What is Cilantro Taco Grill's definition of 'Allowances'?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
We have the right to collect and retain any and all allowances, rebates, credits, incentives, or benefits (collectively, "Allowances") offered by manufacturers, suppliers, and distributors to you, to us, or to our affiliate, based upon your purchases of products (including proprietary products) and services from manufacturers, suppliers, and distributors. We or our affiliates will have all right, title, and interest in and to any and all of these Allowances. We or our affiliate may collect and retain any or all of these Allowances without restriction (unless otherwise instructed by the manufacturer, supplier, or distributor). If we contribute any Allowances from approved suppliers to the Worldwide Creative Marketing Fund, it will not reduce or eliminate your obligation to pay the Worldwide Creative Marketing Fund contribution. During the fiscal year ended December 31, 2023, we and our affiliate did not earn any Allowances because we did not have any franchisees.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 22–24)
What This Means (2024 FDD)
According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, 'Allowances' are defined as any and all allowances, rebates, credits, incentives, or benefits offered by manufacturers, suppliers, and distributors based upon a franchisee's purchases of products and services. These allowances can be offered to the franchisee, Cilantro Taco Grill, or its affiliates.
Cilantro Taco Grill or its affiliates have the right to collect and retain all of these Allowances without restriction, unless otherwise instructed by the manufacturer, supplier, or distributor. The FDD specifies that Cilantro Taco Grill has full right, title, and interest in these Allowances. Furthermore, if Cilantro Taco Grill contributes any Allowances from approved suppliers to the Worldwide Creative Marketing Fund, this contribution does not reduce or eliminate the franchisee's obligation to pay into the Worldwide Creative Marketing Fund.
It is important to note that during the fiscal year ended December 31, 2023, Cilantro Taco Grill and its affiliates did not earn any Allowances because they did not have any franchisees. This indicates that the allowance system is dependent on franchisee purchases and supplier relationships. Prospective franchisees should inquire about the potential for these allowances and how they might impact the overall cost of goods and services.