What does the Evaluation Fee for Cilantro Taco Grill cover?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
If you request that we approve a proposed item or supplier, we reserve the right to charge an Evaluation Fee equal to our actual costs of inspection and testing.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 22–24)
What This Means (2024 FDD)
According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, the Evaluation Fee covers the franchisor's actual costs for inspecting and testing a proposed item or supplier that a franchisee suggests. This fee is charged if a franchisee wants Cilantro Taco Grill to consider a new item or supplier not already approved.
In practice, this means that if a franchisee finds a potentially better or more cost-effective supplier, they can request Cilantro Taco Grill's approval. However, Cilantro Taco Grill reserves the right to charge the franchisee for the expenses incurred while evaluating the proposed supplier's products or services. This evaluation ensures that any new supplier meets Cilantro Taco Grill's standards and specifications.
It is important to note that Cilantro Taco Grill will make a good-faith effort to notify the franchisee of the approval or disapproval within 30 days after receiving all the necessary information. If no approval is given within this timeframe, the request is considered unapproved. Franchisees should factor in the potential for this Evaluation Fee when considering suggesting new suppliers, as it could add to their operational costs.