Which exhibit contains the Cilantro Taco Grill Franchisee Acknowledgment?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
EXHIBIT H FRANCHISEE ACKNOWLEDGEMENT STATEMENT
As you know, CTG Franchise LLC (the "Franchisor") and you are preparing to enter into a franchise agreement (the "Franchise Agreement") for the establishment and operation of a Cilantro Taco Grill franchised business (the "Franchised Business"). The purpose of this Questionnaire is to determine whether any statements or promises were made to you by employees or authorized representatives of the Franchisor, or by employees or authorized representatives of Fransmart, LLC ("Fransmart") that have not been authorized, or that were not disclosed in the Disclosure Document or that may be untrue, inaccurate or misleading. The Franchisor, through the use of this document, desires to ascertain (a) that the undersigned, individually and as a representative of any legal entity established to acquire the franchise rights, fully understands and comprehends that the purchase of a franchise is a business decision, complete with its associated risks, and (b) that you are not relying upon any oral statement, representations, promises or assurances during the negotiations for the purchase of the franchise which have not been authorized by Franchisor.
Source: Item 22 — CONTRACTS (FDD pages 51–52)
What This Means (2024 FDD)
According to the 2024 Cilantro Taco Grill Franchise Disclosure Document, the Franchisee Acknowledgment Statement is found in Exhibit H. This exhibit includes a questionnaire to determine if any unauthorized statements or promises were made to the franchisee by Cilantro Taco Grill employees, representatives, or by Fransmart, LLC, that were not disclosed in the FDD or that may be untrue, inaccurate, or misleading.
The purpose of this acknowledgment is for Cilantro Taco Grill to confirm that the franchisee understands that purchasing a franchise is a business decision with associated risks. Cilantro Taco Grill also wants to ensure that the franchisee is not relying on any oral statements, representations, promises, or assurances during the franchise purchase negotiations that have not been authorized by the franchisor.
This type of acknowledgement is a standard practice in franchising. It protects the franchisor by ensuring that franchisees are making informed decisions based on the documented information in the FDD and the franchise agreement, rather than on potentially misleading or inaccurate verbal promises. It also helps to prevent future disputes or legal claims based on misunderstandings or unauthorized representations.