What is the exclusive purpose for which a Cilantro Taco Grill regional advertising cooperative must be organized?

According to the 2024 Cilantro Taco Grill FDD, a regional advertising cooperative must be organized for the sole purpose of administering advertising programs. These programs include developing standardized promotional materials, which are subject to Cilantro Taco Grill's approval, for use by members in local advertising within the cooperative's designated area.

This means that if a regional advertising cooperative is established, its activities are strictly limited to advertising and promotion. Franchisees can expect that their contributions to the cooperative will be used to fund these advertising efforts. However, Cilantro Taco Grill retains control over the promotional materials used, ensuring brand consistency.

This structure ensures that advertising efforts are coordinated and aligned with the overall brand strategy of Cilantro Taco Grill. Franchisees benefit from professionally developed materials and a shared advertising fund, while the franchisor maintains control over brand messaging and standards.