Where can I find the audited financial statements for Cilantro Taco Grill in the FDD?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 19: FINANCIAL PERFORMANCE REPRESENTATIONS]
ITEM 19: FINANCIAL PERFORMANCE REPRESENTATIONS
The FTC's Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchised and/or franchisor-owned outlets, if there is a reasonable basis for the information, and if the information is included in the disclosure document. Financial performance information that differs from that included in Item 19 may be given only if: (1) a franchisor provides the actual records of an existing outlet you are considering buying; or (2) a franchisor supplements the information provided in this Item 19, for example, by providing information about possible performance at a particular location or under particular circumstances. We have 13 Cilantro Taco Grills outlets that are owned and operated by our affiliates that have been open and operating for at least 12 months. We have included the financial representations for these outlets for the fiscal year ending December 31, 2023 below.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 51)
What This Means (2024 FDD)
Based on the 2024 Cilantro Taco Grill Franchise Disclosure Document, the audited financial statements are not explicitly mentioned within the provided excerpts. However, Item 19 discusses financial performance representations, noting that Cilantro Taco Grill has 13 affiliate-owned outlets open for at least 12 months and includes financial representations for these outlets for the fiscal year ending December 31, 2023.
Item 23 includes receipts and mentions a 'Request for Financial Information' form (Attachment 10) that a franchisee can submit at least 90 days after the effective date of the Franchise Agreement. It also states that any financial information provided is not a projection or promise and should only be used for informational purposes.
While the FDD excerpts do not specify where to find the audited financial statements, they do indicate that financial information may be available under certain conditions and through a specific request process. A prospective franchisee should inquire with Cilantro Taco Grill about the availability of audited financial statements and the process for obtaining them, as well as carefully review Item 19 for any financial performance representations provided.