What must a Cilantro Taco Grill franchisee do if they wish to relocate?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
ement, unless you are in default of your obligations to us.
You may not change the location of your Franchised Business, without our written consent, which we may withhold in our sole discretion. If we give our consent, we will charge you a relocation fee equal to $1,500 in addition to our actual costs and expenses. The conditions under which we may allow you to relocate include the following: loss of your premises not due to your default, demographics of the surrounding area, proximity to other Cilantro Taco Grill outlets, lease requirements, traffic patterns, vehicular and pedestrian access, proximity to major roads, available parking, and overall suitability. If you wish to relocate, you must identify a new location for the Franchised Business that meets our approval, in accordance with our then-current site selection procedures, and build out the approved location within 120 days. If you do not identify a site and complete the build-out within this time period, we may terminate the Franchise Agreement. You must continue to operate at your origi
Source: Item 12 — TERRITORY (FDD pages 33–35)
What This Means (2024 FDD)
According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, a franchisee cannot change the location of their franchised business without written consent from Cilantro Taco Grill. This consent can be withheld at Cilantro Taco Grill's sole discretion. If consent is granted, the franchisee must pay a relocation fee of $1,500, in addition to Cilantro Taco Grill's actual costs and expenses.
Several conditions may influence Cilantro Taco Grill's decision to allow relocation, including loss of the current premises (not due to the franchisee's default), demographics of the surrounding area, proximity to other Cilantro Taco Grill outlets, lease requirements, traffic patterns, vehicular and pedestrian access, proximity to major roads, available parking, and overall suitability of the new location. The franchisee must identify a new location that meets Cilantro Taco Grill's approval, following their then-current site selection procedures, and complete the build-out within 120 days.
If the franchisee fails to identify a suitable site and complete the build-out within the 120-day timeframe, Cilantro Taco Grill reserves the right to terminate the Franchise Agreement. Until the new site's construction is finished, the franchisee must continue operating at the original premises. This ensures continuous operation and service to customers during the transition. These relocation terms are fairly typical in the franchise industry, as franchisors want to maintain brand consistency and ensure any new location meets their standards for success.