Where in the Cilantro Taco Grill FDD can I find information regarding default and termination?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
Immediately after the death or permanent disability of such person, or while the rights granted under this Agreement are owned by an executor, administrator, guardian, personal representative or trustee of that person, the Multi-Unit Operator's Cilantro Taco Grill outlet(s) and remaining development schedule shall be supervised by an interim successor manager satisfactory to Franchisor, or Franchisor, in its sole discretion, may provide interim management at a fee equal to eight percent (8%) of the Gross Revenue generated by the Multi-Unit Operator's Cilantro Taco Grill outlet(s) during Franchisor's operation thereof, plus any and all costs of travel, lodging, meals and other expenses reasonably incurred by Franchisor, pending transfer of the Multi-Unit Operator's Cilantro Taco Grill outlet(s) and remaining development schedule to the deceased or disabled individual's lawful heirs or successors.
7. DEFAULT AND TERMINATION.
Source: Item 23 — RECEIPT (FDD pages 52–208)
What This Means (2024 FDD)
According to the 2024 Cilantro Taco Grill Franchise Disclosure Document, information regarding default and termination can be found under the section titled "7. DEFAULT AND TERMINATION." This section outlines the circumstances under which a Multi-Unit Operator may be considered in material default, leading to the termination of the agreement. These circumstances include misrepresentation of facts during the application process, falsifying reports, failing to comply with laws and regulations, not adhering to the development schedule, and attempting unauthorized transfers.
Additionally, default can occur if the Multi-Unit Operator is convicted of a felony, receives an adverse judgment related to fraud or unfair trade practices, fails to comply with non-disclosure and non-competition agreements, defaults on any agreement with Cilantro Taco Grill or its affiliates, or terminates the agreement without cause. These stipulations are particularly important for prospective franchisees as they highlight the specific actions or inactions that could lead to the termination of their franchise agreement.
The FDD also specifies conditions related to the death or permanent disability of a Multi-Unit Operator, detailing how the Cilantro Taco Grill outlet(s) will be supervised during such times. An interim successor manager, satisfactory to Cilantro Taco Grill, will oversee operations, or Cilantro Taco Grill may provide interim management at a fee equal to eight percent of the Gross Revenue, plus costs. This ensures continuity of the business while the rights are transferred to lawful heirs or successors. Understanding these default and termination clauses is crucial for any potential franchisee to assess the risks and obligations associated with the franchise agreement.