What is the delayed opening fee for a Cilantro Taco Grill franchise, and under what circumstances is it charged?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
based on our then-current standards.
If your Franchised Business does not open within 12 months after you have signed the Franchise Agreement, except for circumstances outside of your control, you must pay to us a delayed opening fee of $100 per day for each day that the opening of your Franchised Business is delayed, up to a maximum of 90 days. If your Franchised Business is not open after this additional 90-day period, then we may terminate your Franchise Agreement or we may require you to continue paying the delayed opening fee until your Franchised Business has opened. This fee is not refundabl
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 26–33)
What This Means (2024 FDD)
According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, if a franchisee's business does not open within 12 months of signing the Franchise Agreement, and the delay is not due to circumstances outside of their control, the franchisee must pay a delayed opening fee. This fee amounts to $100 per day for each day the opening is delayed, up to a maximum of 90 days.
This fee is not refundable. If the Cilantro Taco Grill franchise remains unopened after this initial 90-day extension, the franchisor, CTG Franchise LLC, has the option to either terminate the Franchise Agreement or require the franchisee to continue paying the $100 per day delayed opening fee until the business finally opens.
This policy incentivizes franchisees to open their Cilantro Taco Grill location promptly. The potential for significant daily fees and the risk of termination underscore the importance of adhering to the agreed-upon timeline. Prospective franchisees should carefully consider their ability to meet the opening deadline, taking into account factors such as financing, permitting, and construction, to avoid incurring these penalties.