When is the development fee for 5 Cilantro Taco Grill outlets due?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
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| Type of Expenditure | Amount | Method of | When Due | To Whom |
|---|---|---|---|---|
| Payment | Payment is Made | |||
| Development Fee for 5 Outlets1 | $140,000 | Lump sum payment in cash or available funds | Upon signing the Multi-Unit Oper |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 18–21)
What This Means (2024 FDD)
According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, the development fee of $140,000 for 5 outlets is due upon signing the Multi-Unit Operator Agreement. The payment must be made as a lump sum in cash or available funds directly to Cilantro Taco Grill.
This means that if you plan to open multiple Cilantro Taco Grill locations under a multi-unit agreement, you must pay the entire $140,000 development fee upfront when you sign the agreement. This is a significant initial investment that prospective franchisees need to have readily available.
It's important for potential franchisees to carefully consider their financial situation and ensure they have the necessary funds before committing to a multi-unit agreement with Cilantro Taco Grill. Understanding the payment terms and schedule is crucial for managing cash flow and planning the launch of multiple franchise locations.