What factors can cause the rent to vary for a Cilantro Taco Grill franchise?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
4Rent – 3 Months. Landlords may vary the base rental rate and charge rent based on a percentage of gross sales. In addition to base rent, the lease may require you to pay common area maintenance charges ("CAM Charges"), your pro rata share of the real estate taxes and insurance, and your pro rata share of other charges. The actual amount you pay under the lease will vary depending on the size of the Franchised Business, the types of charges that are allocated to tenants under the lease, your ability to negotiate with landlords and the prevailing rental rates in the geographic region. We relied upon the experience of our affiliates to compile this estimate.
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, several factors can influence the rent paid by a franchisee. The base rental rate can vary, and landlords might charge rent based on a percentage of the gross sales generated by the Cilantro Taco Grill location.
In addition to the base rent, the lease agreement may stipulate that the franchisee is responsible for paying common area maintenance charges (CAM charges). Franchisees may also have to cover their pro rata share of real estate taxes, insurance costs, and other charges associated with the property.
The actual amount a Cilantro Taco Grill franchisee pays in rent can fluctuate based on several elements, including the size of the franchised business premises and the types of charges allocated to tenants under the lease. A franchisee's negotiation skills when dealing with landlords and the prevailing rental rates in the specific geographic region where the restaurant is located also play a significant role in determining the final rent amount. The franchisor relied on the experience of its affiliates to compile this estimate.