factual

What experience did Cilantro Taco Grill rely on to prepare the additional funds estimate?

Cilantro_Taco_Grill Franchise · 2024 FDD

Answer from 2024 FDD Document

15Additional Funds – 3 months. We relied on our affiliates' experience in operating Cilantro Taco Grill businesses in the Illinois area since 2013 when preparing this estimate. This is an estimate of the amount of additional operating capital that you may need to operate your Franchised Business during the first 3 months after commencing operations. We cannot guarantee that you will not incur additional expenses in starting the business that may exceed this estimate. This estimate includes such items as utilities, internet service, initial payroll and payroll taxes, Royalties (as described in this disclosure document), Worldwide Creative Marketing Fees, repairs and maintenance, bank charges, music fees, miscellaneous supplies and equipment, initial staff recruiting expenses, and other miscellaneous items. These estimates do not include any compensation to you, nor do they include debt service.

You should review these figures carefully with a business advisor before making any decision to invest in the franchise. Your additional costs will depend on factors such as how closely you follow our methods and procedures; your management skill, experience, and business acumen; local economic conditions; the local market for our service; competition; and the sales level reached during your initial period.

We do not offer financing for any part of the initial investment.

Source: Item 10 — Initial Inventory. This estimate is for the cost of the initial inventory sufficient for approximately 3 months of operation. Your initial inventory will include ingredients and supplies, containers, cleaning products, and other disposables. (FDD pages 21–22)

What This Means (2024 FDD)

According to the 2024 Cilantro Taco Grill Franchise Disclosure Document, the franchisor relied on its affiliates' experience in operating Cilantro Taco Grill businesses in the Illinois area since 2013 to prepare the estimate for additional funds. This estimate covers the amount of additional operating capital a franchisee may need during the first three months of operation.

The estimate includes expenses such as utilities, internet service, initial payroll and payroll taxes, royalties, Worldwide Creative Marketing Fees, repairs and maintenance, bank charges, music fees, miscellaneous supplies and equipment, and initial staff recruiting expenses. However, the estimate does not include any compensation to the franchisee or debt service.

The FDD advises prospective franchisees to carefully review these figures with a business advisor before investing in the franchise. The additional costs can vary based on factors such as adherence to Cilantro Taco Grill's methods and procedures, the franchisee's management skills, local economic conditions, the local market, competition, and the sales level achieved during the initial period. Cilantro Taco Grill does not offer financing for any part of the initial investment.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.