factual

Is a Cilantro Taco Grill franchisee required to make additions, alterations, repairs, refurbishing, and replacements to comply with the franchisor's standards?

Cilantro_Taco_Grill Franchise · 2024 FDD

Answer from 2024 FDD Document

9. MAINTENANCE AND IMPROVEMENT OF THE FRANCHISED LOCATION AND SYSTEM.

  • 9.1 Maintenance of Franchised Business Location. Franchisee shall equip and maintain the Franchised Business location to the standards of décor, sanitation, repair and condition required by Franchisor, which standards are specified in the Manual and other written directives, standards and specifications. Franchisee, at Franchisee's expense, shall make such additions, alterations, repairs, refurbishing and replacements as may be required to comply with Franchisor's standards, including, without limitation, periodic repainting and repairs or replacement of worn or impaired décor, materials, furniture, fixtures, equipment, and signage as Franchisor may direct. Franchisor reserves the right to require Franchisee to utilize temporary signage on each motor vehicle used to provide any delivery or catering services permitted by Franchisor, if applicable. Any motor vehicle used in connection with the Franchised Business shall be kept clean, in good working order and properly registered and insured. Franchisee shall require each motor vehicle operator to comply with all laws, regulations and rules of the road, including complying with all hands-free and no-texting laws, and to use due care and caution operating and maintaining the motor vehicles.
  • 9.2 Inspections. Franchisee shall operate and maintain the Franchised Business and Franchised Business location in conformance with best practices for food and beverage storage, handling,

preparation, service and disposal and in a manner that will ensure the highest rating possible for businesses of like kind from the governmental authorities that may inspect such businesses in the Territory. Franchisee shall submit to Franchisor a copy of any inspection reports. It shall be a default of this Agreement if, upon inspection, Franchisee does not obtain such rating or if Franchisee fails to operate in accordance with the general standards of quality, maintenance, repairs and sanitation required by the System, and Franchisor may, at its option, terminate this Agreement.

9.3 Equipment and Technology Updates. Franchisee shall make any and all upgrades to equipment, including but not limited to, design, display and storage equipment, POS Systems, and computer hardware, software and peripherals, and any technology used in conjunction therewith, as Franchisor requires in its sole and absolute discretion.

Source: Item 23 — RECEIPT (FDD pages 52–208)

What This Means (2024 FDD)

According to the 2024 Cilantro Taco Grill Franchise Disclosure Document, franchisees are indeed required to maintain the franchised business location to the standards set by Cilantro Taco Grill. This includes equipping and maintaining the location to meet the standards of décor, sanitation, repair, and overall condition as specified in the manual and other written directives.

The franchisee is responsible for covering the expenses associated with any necessary additions, alterations, repairs, refurbishing, and replacements needed to comply with Cilantro Taco Grill's standards. This encompasses periodic repainting, as well as the repair or replacement of worn or impaired décor, materials, furniture, fixtures, equipment, and signage, as directed by Cilantro Taco Grill. Franchisees must also make any and all upgrades to equipment, including but not limited to, design, display and storage equipment, POS Systems, and computer hardware, software and peripherals, and any technology used in conjunction therewith, as Cilantro Taco Grill requires in its sole and absolute discretion.

Cilantro Taco Grill also reserves the right to require franchisees to use temporary signage on vehicles used for delivery or catering services, if applicable. Furthermore, franchisees must ensure that any vehicle used in connection with the business is kept clean, in good working order, and properly registered and insured. These requirements ensure that all Cilantro Taco Grill locations maintain a consistent brand image and meet the franchisor's standards for quality and appearance.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.