What must a Cilantro Taco Grill franchisee certify in writing to the franchisor before opening?

Based on the 2024 Cilantro Taco Grill FDD, before opening a Cilantro Taco Grill restaurant, a franchisee and its principals must represent in writing to the franchisor that they have entered into the agreement with the intention of fully complying with the obligations to construct a Cilantro Taco Grill restaurant. They must also confirm that they are not intending to resell the rights to develop the restaurant.

This representation is crucial because Cilantro Taco Grill grants franchise rights based on the business skills, financial capacity, and personal character of the franchisee and their principals. The franchisor relies on these factors when awarding the franchise. This upfront commitment ensures that the franchisee is serious about developing and operating the restaurant themselves, rather than speculating on the franchise rights.

The FDD also states that the franchise agreement and the rights and obligations under it cannot be transferred until after the Cilantro Taco Grill restaurant is open for business to the public. This restriction further emphasizes the franchisor's intent to ensure that the initial franchisee is committed to establishing and running the business before any transfer of rights can occur. This protects the brand and the system from potential mismanagement or instability that could arise from premature transfers.