For a Cilantro Taco Grill franchise, for how long is the 'Additional Funds' estimate projected?
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.
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 the 2024 Cilantro Taco Grill Franchise Disclosure Document, the 'Additional Funds' estimate covers the first 3 months of operations. This estimate is designed to cover expenses such as utilities, internet service, initial payroll and payroll taxes, royalties, creative marketing fees, repairs and maintenance, bank charges, music fees, miscellaneous supplies and equipment, and initial staff recruiting expenses.
It's important to note that this estimate does not include any compensation for the franchisee or debt service. Cilantro Taco Grill based this estimate on their affiliates' experience operating Cilantro Taco Grill businesses in the Illinois area since 2013. However, the document explicitly states that Cilantro Taco Grill cannot guarantee that franchisees will not incur additional expenses that exceed this estimate.
Prospective franchisees should carefully review these figures with a business advisor, as their actual costs will depend on various factors. These factors include how closely they follow Cilantro Taco Grill's methods and procedures, their management skills, local economic conditions, the local market for Cilantro Taco Grill's services, competition, and the sales level reached during the initial period.