What is a Cilantro Taco Grill franchisee required to do regarding finding a location for their Franchised Business?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
Under the Franchise Agreement, you have the right to establish and operate one Cilantro Taco Grill outlet within a territory that will be defined after the location of your Cilantro Taco Grill outlet is identified and approved by us (the "Territory"). You are required to find and obtain possession of a specific location for your Franchised Business that meets our site selection criteria and our approval. The boundaries of your Territory may be described in terms of zip codes, streets, landmarks (both natural and man-made) or county lines, or otherwise delineated on a map attached to the Data Sheet.
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 is responsible for finding and securing a location for their Cilantro Taco Grill outlet. This location must meet the franchisor's site selection criteria and receive their approval. The territory granted to the franchisee is defined after the location is approved. This means the franchisee bears the initial burden of identifying potential sites that align with Cilantro Taco Grill's requirements.
If a franchisee wishes to relocate their Cilantro Taco Grill, they must obtain written consent from the franchisor, which may be withheld at their discretion. If consent is granted, the franchisee will incur a relocation fee of $1,500, in addition to the franchisor's actual costs and expenses. The franchisor will consider factors such as loss of premises, demographics, proximity to other Cilantro Taco Grill outlets, lease requirements, traffic patterns, access, parking, and overall suitability when evaluating a relocation request. The franchisee must identify a new location that meets the franchisor's approval, following their current site selection procedures, and complete the build-out within 120 days. Failure to do so may result in termination of the Franchise Agreement. The franchisee must continue operating at their original location until the new site is ready.
For multi-unit operators, each Cilantro Taco Grill location and its territory will be within a designated Development Area. Proposed sites must be submitted to Cilantro Taco Grill for approval based on their current standards. This process ensures that all locations meet the brand's criteria and maintain consistency across the franchise system. The franchisee does not receive an exclusive territory and may face competition from other franchisees, company-owned outlets, or other distribution channels.