Is a Cilantro Taco Grill franchisee prohibited from serving customers outside of their Territory?

According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, franchisees are generally restricted from soliciting or serving customers outside of their designated territory. The FDD specifies that franchisees are prohibited from serving and soliciting customers outside of the Territory and from alternative methods of distribution, as detailed in the agreement. This restriction ensures that each Cilantro Taco Grill location can focus on its local market without direct competition from other franchisees.

However, there is an exception to this rule. A Cilantro Taco Grill franchisee may provide delivery and catering services to customers outside their territory if that customer is located in an area not occupied by another Cilantro Taco Grill restaurant. This exception allows franchisees to capture business in underserved areas, potentially increasing their revenue.

These territorial restrictions and exceptions are important for prospective franchisees to consider. Understanding the boundaries of their territory and the conditions under which they can serve customers outside of it is crucial for developing an effective business plan and maximizing their market reach. Franchisees should discuss these provisions with Cilantro Taco Grill to fully understand their implications and potential impact on their business.