Is a Cilantro Taco Grill franchisee responsible for negotiating a lease with the owner of an approved site?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
We will provide you with our then-current site selection guidelines and approve a location for your Franchised Business.
Within 60 days of signing the Franchise Agreement, you must submit a written request for approval to us describing the proposed location and providing other information about the site that we reasonably request.
We will respond within 30 days, either accepting or rejecting the proposed location.
We consider the following factors in approving a site: general location and neighborhood, distance from neighboring franchise territories, proximity to major roads and residential areas, traffic patterns, condition of premises, tenant mix, and demographic characteristics of the area.
If you do not identify a site that meets our approval within 60 days of signing the Franchise Agreement, we reserve the right to terminate the Franchise Agreement.
We will not own and/or lease a site to you.
You are responsible for negotiating a lease with the owner of a site we approve.
Any lease must include our Conditional Assignment of Lease Agreement, a copy of which is attached to the Franchise Agreement as Attachment 5 (Franchise Agreement, Sections 8.1.2, 8.1.3 10.1).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 26–33)
What This Means (2024 FDD)
According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, the franchisee is responsible for negotiating the lease with the property owner once Cilantro Taco Grill approves the site. The FDD states that Cilantro Taco Grill will not own or lease a site to the franchisee.
Within 60 days of signing the Franchise Agreement, the franchisee must submit a written request for approval describing the proposed location and providing other information about the site that Cilantro Taco Grill reasonably requests. Cilantro Taco Grill will then respond within 30 days, either accepting or rejecting the proposed location.
The lease negotiated by the franchisee must include Cilantro Taco Grill's Conditional Assignment of Lease Agreement, a copy of which is attached to the Franchise Agreement.