What is the development fee for 5 outlets for a Cilantro Taco Grill franchise?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Expenditure | Amount | Method of |
|---|---|---|
| Payment | ||
| Development Fee for 5 Outlets1 | $140,000 | Lump sum payment in cash or available funds |
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 for 5 outlets is $140,000. This fee is a lump sum payment that must be paid in cash or available funds upon signing the Multi-Unit Operator Agreement. This fee compensates Cilantro Taco Grill for granting the franchisee the rights to develop multiple franchise locations within a specific territory.
It's important to note that this development fee is separate from other initial investment costs. The FDD also lists 'Other Expenditures for the First Franchised Business' which range from $238,000 to $695,800. These expenditures cover costs associated with opening the first of the five planned locations. The total estimated initial investment, combining the development fee and other expenditures, ranges from $378,000 to $835,800.
Prospective franchisees should carefully consider the financial commitment required for multi-unit development. The development fee is non-refundable and is in addition to the costs of opening each individual Cilantro Taco Grill restaurant. Multi-unit franchisees should also be aware that the development fee increases if they commit to develop more than 5 Franchised Businesses.