For the Cilantro Taco Grill franchise, what is included in the estimate for additional funds?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
15Additional Funds – 3 months. We relied on our affiliates' experience in operating Cilantro Taco Grill businesses in the Illinois area since 2013 when preparing this estimate. This is an estimate of the amount of additional operating capital that you may need to operate your Franchised Business during the first 3 months after commencing operations. We cannot guarantee that you will not incur additional expenses in starting the business that may exceed this estimate. This estimate includes such items as utilities, internet service, initial payroll and payroll taxes, Royalties (as described in this disclosure document), Worldwide Creative Marketing Fees, repairs and maintenance, bank charges, music fees, miscellaneous supplies and equipment, initial staff recruiting expenses, and other miscellaneous items. These estimates do not include any compensation to you, nor do they include debt service.
You should review these figures carefully with a business advisor before making any decision to invest in the franchise. Your additional costs will depend on factors such as how closely you follow our methods and procedures; your management skill, experience, and business acumen; local economic conditions; the local market for our service; competition; and the sales level reached during your initial period.
Source: Item 10 — Initial Inventory. This estimate is for the cost of the initial inventory sufficient for approximately 3 months of operation. Your initial inventory will include ingredients and supplies, containers, cleaning products, and other disposables. (FDD pages 21–22)
What This Means (2024 FDD)
According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, the estimate for additional funds includes several operating expenses a franchisee may incur during the first three months of business. These expenses include utilities, internet service, initial payroll and payroll taxes, royalties, Worldwide Creative Marketing Fees, repairs and maintenance, bank charges, music fees, miscellaneous supplies and equipment, and initial staff recruiting expenses. The estimate for additional funds is based on the experience of Cilantro Taco Grill's affiliates in operating businesses in the Illinois area since 2013.
The FDD notes that the estimate for additional funds does not include compensation for the franchisee or debt service. Cilantro Taco Grill cannot guarantee that franchisees will not incur additional expenses beyond this estimate when starting the business.
The document advises prospective franchisees to carefully review these figures with a business advisor before investing in the franchise. The franchisee's actual additional costs will vary depending on factors such as adherence to Cilantro Taco Grill's methods and procedures, the franchisee's management skills, local economic conditions, the local market for the service, competition, and the sales level reached during the initial period.