What must a Cilantro Taco Grill franchisee be in compliance with to be considered for the right to establish additional outlets?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
Unless you have signed our Multi-Unit Operator Agreement, we may, but have no obligation to, consider granting to you the right to establish additional Cilantro Taco Grill outlets under other franchise agreements. The Franchise Agreement grants you no options, rights of first refusal or similar rights to acquire additional franchises within the Territory or contiguous territories. We may, but have no obligation to, consider granting to you the right to establish additional Cilantro Taco Grill outlets under other franchise agreements if you are in compliance with the Franchise Agreement and propose to open another Cilantro Taco Grill Franchise in an area and at a location we approve.
Source: Item 12 — TERRITORY (FDD pages 33–35)
What This Means (2024 FDD)
According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, if a franchisee wishes to be considered for the opportunity to establish additional Cilantro Taco Grill outlets under new franchise agreements, they must be in compliance with their existing Franchise Agreement. Additionally, the proposed location for the new Cilantro Taco Grill franchise must be approved by the company.
This stipulation means that a franchisee's adherence to the terms and conditions of their current agreement is a prerequisite for expansion. Cilantro Taco Grill will likely review the franchisee's operational performance, payment history, and overall compliance record before granting the right to open additional locations. This protects the brand by ensuring that only successful and compliant franchisees are given the opportunity to grow.
The requirement for location approval ensures that any new outlet aligns with Cilantro Taco Grill's strategic growth plans and site selection criteria. This process typically involves an evaluation of factors such as market demographics, competition, and accessibility. While compliance with the Franchise Agreement is essential, Cilantro Taco Grill is under no obligation to grant additional franchises.