Where is the development area for the Cilantro Taco Grill franchise described?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
open and operate one (1) Cilantro Taco Grill outlet within the Development Area set forth in Attachment 2. Multi-Unit Operator shall be granted rights to establish additional Cilantro Taco Grill outlets in the Development Area, up to the total number of outlets set forth in the Mandatory Development Schedule set forth in Section 5.2 hereof, subject to Multi-Unit Operator's full compliance with all conditions precedent to the grant of such rights outlined below, which rights shall be exercised in accordance with Section 4.1 hereof. The Development Area is typically described in terms of municipal boundaries, county boundaries or specified trade areas within a municipality. Trade areas cannot overlap or interfere with an existing trade area, designated territories or development areas. Franchisor reserves the right to provide a two (2) mile buffer between trade areas, designated territories and development areas. Franchisor reserves the right to adjust or reassign the Development Area, including trade areas, to best serve Multi-Unit Operator's interests, or in the event there is a conflict with an existing trade area, designated territory or development area. Franchisor reserves the right to: (i) move that trade area to an unoccupied area, or (ii) refund to Multi-Unit Operator the pro-rata portion of the Development Fee that was paid for the number of outlets to be developed in those specific trade areas. The Development Rights granted to Multi-Unit Operator herein do not include the right to develop Restaurants at any Non-Traditional Sites. As used herein, a "Non-Traditional Site" includes, without limitation: gas stations or convenience stores; transportation facilities, including airports, train stations, subways and rail and bus stations; military bases and government offices; sports facilities, including stadiums and arenas; amusement parks, zoos and convention centers; car and truck rest stops and travel centers; educational facilities; recreational theme parks; hospitals; hotels; business or industrial foodservice venues; venues in which food service is or may be provided by a master concessionaire or contract food service provider; Indian reservations; casinos; or any similar captive market location.
Source: Item 23 — RECEIPT (FDD pages 52–208)
What This Means (2024 FDD)
According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, the Development Area for multi-unit operators is detailed in Attachment 2. The document specifies that the Development Area is typically defined using municipal or county boundaries, or specific trade areas within a municipality. These trade areas must not overlap with any existing trade areas, designated territories, or other development areas.
Cilantro Taco Grill retains the right to implement a two-mile buffer zone between trade areas, designated territories, and development areas. Additionally, Cilantro Taco Grill reserves the right to adjust or reassign the Development Area, including trade areas, to better serve the Multi-Unit Operator's interests or to resolve conflicts with existing areas. In cases of conflict, Cilantro Taco Grill may either move the trade area to an unoccupied area or refund a pro-rata portion of the Development Fee for the number of outlets affected.
The Development Rights granted to Multi-Unit Operators do not extend to Non-Traditional Sites, which include locations such as gas stations, transportation facilities, military bases, sports facilities, amusement parks, educational facilities, hospitals, hotels, and other similar captive market locations. This delineation ensures that development is focused on standard Cilantro Taco Grill restaurant locations rather than specialized venues.