What is the delayed opening fee for a Cilantro Taco Grill franchise, and under what conditions does it apply?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
s non-refundable.
If your Franchised Business does not open within 12 months after you have signed the Franchise Agreement, except for circumstances that are not in 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 additional days. If your Store 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 Store has opened. This fee is not refundable. If you are a Multi-Unit Operator and your Franchised Business does not open by the opening date provided in the Multi-Unit Operator Agreement, then you will pay the same delayed op
Source: Item 5 — INITIAL FEES (FDD pages 11–12)
What This Means (2024 FDD)
According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, a delayed opening fee is applicable if a franchisee's business does not open within 12 months of signing the Franchise Agreement. This fee is $100 per day for each day the opening is delayed. This fee applies unless the delay is due to circumstances outside the franchisee's control.
The delayed opening fee can be charged for a maximum of 90 additional days. If the Cilantro Taco Grill store is still not open after this 90-day period, Cilantro Taco Grill has the option to either terminate the Franchise Agreement or require the franchisee to continue paying the delayed opening fee until the store finally opens. This fee is non-refundable.
For Multi-Unit Operators, the same delayed opening fee applies if the franchised business does not open by the opening date specified in the Multi-Unit Operator Agreement. This policy ensures that franchisees are incentivized to open their Cilantro Taco Grill locations in a timely manner, and it provides Cilantro Taco Grill with recourse if openings are significantly delayed.