Does the Cilantro Taco Grill Franchisee Acknowledgment need to be signed before or after signing the Franchise Agreement?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
rovision supersedes any other term of any document executed in connection with the franchise.
The undersigned does hereby acknowledge receipt of this addendum.
CTG Franchise LLC Ву: Ву: Name: Cuahutémoc Morfin Title: Owner PRINCIPAL:
EXHIBIT H FRANCHISEE ACKNOWLEDGEMENT STATEMENT
As you know, CTG Franchise LLC (the "Franchisor") and you are preparing to enter into a franchise agreement (the "Franchise Agreement") for the establishment and operation of a Cilantro Taco Grill franchised business (the "Franchised Business"). The purpose of this Questionnaire is to determine whether any statements or promises were made to you by employees or authorized representatives of the Franchisor, or by employees or authorized representatives of Fransmart, LLC ("Fransmart") that have not been authorized, or that were not disclosed in the Disclosure Document or that may be untrue, inaccurate or misleading. The Franchisor, through the use of this document, desires to ascertain (a) that the undersigned, individually and as a representative of any legal entity established to acquire the franchise rights, fully understands and comprehends that the purchase of a franchise is a business decision, complete with its associated risks, and (b) that you are not relying upon any oral statement, representations, promises or assurances during the negotiations for the purchase of the franchise which have not been authorized by Franchisor.
In the event that you are intending to purchase an existing Franchised Business from an existing franchisee, you may have received information from the transferring franchisee, who is not an employee or representative of ours. The questions below do not apply to any communications that you had with the transferring franchisee.
Source: Item 22 — CONTRACTS (FDD pages 51–52)
What This Means (2024 FDD)
According to the 2024 Cilantro Taco Grill Franchise Disclosure Document, the Franchisee Acknowledgment is related to the preparation of entering into a franchise agreement. Specifically, CTG Franchise LLC and the franchisee are preparing to enter into a franchise agreement for a Cilantro Taco Grill business.
The purpose of the Acknowledgment is to confirm whether any unauthorized statements or promises were made during the franchise discussion by employees or representatives of Cilantro Taco Grill or Fransmart, LLC, that were not disclosed in the Franchise Disclosure Document or that may be untrue, inaccurate, or misleading. Cilantro Taco Grill uses this document to verify that the franchisee understands that purchasing a franchise is a business decision with associated risks and that they are not relying on any unauthorized oral statements or assurances.
Furthermore, the document states that Cilantro Taco Grill would not enter into the Franchise Agreement without the franchisee's agreement to comply with all the terms and provisions outlined in the agreement. This suggests that the Franchisee Acknowledgment is signed in preparation for, and likely before, the actual signing of the Franchise Agreement. The acknowledgment ensures both parties are aligned on the understanding of the agreement and any prior representations made.