factual

What is a 'Franchise Agreement' in the context of a Cilantro Taco Grill franchise?

Cilantro_Taco_Grill Franchise · 2024 FDD

Answer 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. On Termination of the Franchise Agreement, or on periodic request of Franchisor, Franchisee will immediately:
    • 2.3.1 direct all internet service providers, domain name registries, internet search engines, other listing agencies and software companies (collectively, the "Internet and Software Companies") with which Franchisee has Electronic Advertising and Software: (i) to transfer all of Franchisee's interest in such Electronic Advertising and Software to Franchisor; and (ii) to execute such documents and take such actions as may be necessary to effectuate such transfer. In the event Franchisor does not desire to accept any or all such Electronic Advertising and Software, Franchisee will immediately direct the Internet and Software Companies to terminate such Electronic Advertising and Software or will take such other actions with respect to the Electronic Advertising and Software as Franchisor directs; and
    • 2.3.2 direct all telephone companies, telephone directory publishers, and telephone directory listing agencies (collectively, the "Telephone Companies") with which Franchisee has Telephone Listings: (i) to transfer all Franchisee's interest in such Telephone Listings to Franchisor; and (ii) to execute such documents and take such actions as may be necessary to effectuate such transfer. In the event Franchisor does not desire to accept any or all such Telephone Listings, Franchisee will immediately direct the Telephone Companies to terminate such Telephone Listings or will take such other actions with respect to the Telephone Listings as Franchisor directs.
  • 2.4 Appointment; Power of Attorney.

Source: Item 23 — RECEIPT (FDD pages 52–208)

What This Means (2024 FDD)

According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, the Franchise Agreement is a contract between the franchisor and franchisee that grants the franchisee the license to operate a Cilantro Taco Grill franchise. The agreement allows the franchisee to use Cilantro Taco Grill's trademarks and system at a single location within a designated territory. The franchisee is expected to adhere strictly to the operational methods and standards set by Cilantro Taco Grill, which may evolve over time.

The Franchise Agreement also covers aspects such as internet-based advertising, social media management, software usage, and telephone listings associated with the Cilantro Taco Grill brand. The agreement ensures that the franchisee complies with the terms and provisions set forth by Cilantro Taco Grill. It specifies that franchisees may acquire rights to domain names, social media accounts, and software related to the franchised business during the agreement term.

For multi-unit operators, exercising development rights requires entering into a separate Franchise Agreement for each Cilantro Taco Grill outlet. Each agreement will be based on Cilantro Taco Grill's current form at the time, presented with the current Franchise Disclosure Document. While the terms may vary, the initial franchise fee, royalty fee, and local advertising costs will remain consistent with the first franchise agreement. Multi-unit operators must return the executed Franchise Agreement within fifteen days of receipt, and they must maintain at least 51% ownership of each restaurant opened under the agreement.

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.