What must a Cilantro Taco Grill franchisee propose to do 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, the franchisor may consider granting a franchisee the right to establish additional Cilantro Taco Grill outlets under other franchise agreements if the franchisee is in compliance with the existing Franchise Agreement. Additionally, the franchisee must propose to open another Cilantro Taco Grill franchise in an area and at a location that Cilantro Taco Grill approves.
This means that simply being a franchisee in good standing is not enough to guarantee the right to open additional locations. Cilantro Taco Grill retains the discretion to decide whether or not to grant additional franchises. A franchisee must proactively identify a suitable location and propose opening a new franchise there.
It is important to note that the Franchise Agreement grants no options, rights of first refusal, or similar rights to acquire additional franchises within the Territory or contiguous territories. Even if a franchisee operates successfully, Cilantro Taco Grill is not obligated to offer them the opportunity to expand. This contrasts with some franchise systems that offer existing franchisees the first right to open new locations within a defined area. Prospective franchisees should inquire about Cilantro Taco Grill's specific criteria and process for awarding additional franchises to existing franchisees.