Does the Cilantro Taco Grill Franchise Agreement require the franchisee to personally supervise the outlet?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
The Franchise Agreement does not require that you personally supervise your Cilantro Taco Grill outlet, although we recommend it. During the entire term of the Franchise Agreement and any renewals, you must consistently employ and designate a minimum of one General Manager and two Managers who will be the main individuals responsible for the supervision, management and operation of the Franchised Business. The General Manager and Managers must devote their full time and reasonable efforts the day-to-day operations of the Franchised Business. You must also employ additional personnel needed to operate and to manage the Franchised Business. We require General Managers and Managers to satisfy our educational and business criteria. They must be individuals acceptable to us and must satisfy our training requirements, including successful completion of the HQ Initial Training Program.
A Principal can be the General Manager or Manager if they have at least three years of previous restaurant management or restaurant ownership experience. The Designated Controlling Principal may not be the General Manager or Manager. If a General Manager or Manager cannot serve in the position or does not meet the requirements, then he or she must be replaced within 60 days from the date they are no longer able to serve the position or do not meet the requirements. We do not require that your General Manager or Managers have an ownership interest in you. If the franchisee is a business entity, your general manager is not required to have an equity interest in the franchisee entity. Your manager must devote full time to the job and cannot have an interest or business relationship with any of our competitors.
Your manager and all other personnel who will have access to our proprietary and Confidential Information and training must sign our Non-Disclosure/Non-Competition Agreement. If your Franchised Business is owned by an entity, all owners of the entity must personally sign the Franchise Agreement as a Principal. Your spouse is not required to sign a personal guaranty.
Source: Item 15 — OBLIGATIONS OF THE FRANCHISEE TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 37)
What This Means (2024 FDD)
According to the 2024 Cilantro Taco Grill Franchise Disclosure Document, the Franchise Agreement does not mandate that franchisees personally supervise their Cilantro Taco Grill outlet. However, Cilantro Taco Grill recommends it. Franchisees must employ and designate at least one General Manager and two Managers. These managers will be responsible for the supervision, management, and operation of the franchised business.
The General Manager and Managers must commit their full time and reasonable efforts to the daily operations. Franchisees must also employ additional personnel as needed to manage the business. Cilantro Taco Grill requires that General Managers and Managers meet specific educational and business criteria, be acceptable to Cilantro Taco Grill, and fulfill training requirements, including completing the HQ Initial Training Program.
A Principal can fulfill the role of General Manager or Manager if they possess at least three years of prior restaurant management or ownership experience. However, the Designated Controlling Principal is not allowed to be the General Manager or Manager. If a General Manager or Manager is unable to serve or does not meet the requirements, they must be replaced within 60 days. Cilantro Taco Grill does not require that General Managers or Managers have an ownership interest in the franchisee. If the franchisee is a business entity, the general manager is not required to have an equity interest in the franchisee entity. The manager must devote full time to the job and cannot have an interest or business relationship with any of Cilantro Taco Grill's competitors.
All managers and personnel with access to proprietary and Confidential Information and training must sign a Non-Disclosure/Non-Competition Agreement. If the Franchised Business is owned by an entity, all owners of the entity must personally sign the Franchise Agreement as a Principal. A franchisee's spouse is not required to sign a personal guaranty.