Who does the Cilantro Taco Grill franchise agreement bind and inure to the benefit of, besides the franchisee?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
esiding at | and | | | , an | | individual residing at | and Principal(s) shall be collectively referred to in this Agreement as "Franchisee". | ("Principal(s)"). | | | WHEREAS, Franchisee desires to enter into a franchise agreement with Franchisor for a Cilantro Taco Grill business ("Franchise Agreement") which will allow Franchisee to conduct internet-based advertising, maintain social media and software accounts, and use telephone listings linked to the Cilantro Taco Grill brand.
WHEREAS, Franchisor would not enter into the Franchise Agreement without Franchisee's agreement to enter into, comply with, and be bound by all the terms and provisions of this Agreement;
NOW, THEREFORE, for and in consideration of the foregoing and the mutual promises and covenants contained herein, and in further consideration of the Franchise Agreement and the mutual promises and covenants contained therein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
1. Definitions
All terms used but not otherwise defined in this Agreement shall have the meanings set forth in the Franchise Agreement. "Termination" of the Franchise Agreement shall include, but shall not be limited to, the voluntary termination, involuntary termination, or natural expiration thereof.
2. Internet Advertising and Telephone Listings
- 2.1 Interest in Web Sites, Social Media Accounts, Other Electronic Listings and Software. Franchisee may acquire (whether in accordance with or in violation of the Franchise Agreement) during the term of Franchise Agreement, certain right, title, or interest in and to certain domain names, social media accounts, hypertext markup language, uniform resource locator addresses, access to corresponding internet web sites, the right to hyperlink to certain web sites and listings on various internet search engines, and the right to use certain software (collectively, "Electronic Advertising and Software") related to the Franchised Business or the Marks.
- 2.2 Interest in Telephone Numbers and Listings. Franchisee has or will acquire during the term of the Franchise Agreement, certain right, title, and interest in and to those certain telephone numbers and regular, classified, internet page, and other telephone directory listings (collectively, the "Telephone Listings") related to the Franchised Business or the Marks.
- 2.3 Transfer.
Source: Item 23 — RECEIPT (FDD pages 52–208)
What This Means (2024 FDD)
The 2024 Cilantro Taco Grill Franchise Disclosure Document (FDD) indicates that the franchise agreement involves multiple parties and considerations. Specifically, the agreement is established between the franchisor and the franchisee, outlining the terms and conditions for operating a Cilantro Taco Grill franchise.
The franchise agreement is structured such that the goodwill arising from the franchisee's use of the intellectual property and the Cilantro Taco Grill system exclusively benefits both the franchisor and its licensor. This means that any positive reputation or brand recognition developed through the franchisee's efforts ultimately accrues to the advantage of Cilantro Taco Grill and its associated licensor.
Furthermore, the franchise agreement includes recitations that the franchisee will conduct internet-based advertising, maintain social media and software accounts, and use telephone listings linked to the Cilantro Taco Grill brand. The franchisor would not enter into the Franchise Agreement without Franchisee's agreement to comply with, and be bound by all the terms and provisions of this Agreement.