Can a Cilantro Taco Grill franchisee solicit sales from customers outside their Territory?

According to the 2024 Cilantro Taco Grill Franchise Disclosure Document, franchisees are generally prohibited from soliciting sales from customers outside of their designated territory. The FDD specifies that franchisees "may not solicit sales from customers outside your Territory." This restriction is in place to protect the market area of other franchisees within the Cilantro Taco Grill system. However, the franchisee's local advertising may extend beyond their territory, allowing for some spillover reach.

This territorial limitation is a standard practice in franchising, intended to prevent cannibalization of sales between franchise locations. Cilantro Taco Grill aims to ensure that each franchisee has a defined market area to focus on, fostering a more stable business environment. The FDD also notes that Cilantro Taco Grill will include a listing of the franchisee's outlet location on its website, and customers may place online orders at that location for pick-up or delivery, which could potentially include customers from outside the franchisee's territory.

It is important to note that while franchisees cannot actively solicit customers outside their territory, the reach of their local advertising may extend beyond those boundaries. Additionally, with the franchisor's prior consent and in accordance with their requirements, franchisees may solicit and conduct sales outside of the Franchised Business location at promotional and sales events within the Territory. Franchisees should consult with Cilantro Taco Grill to fully understand the scope and limitations of their territorial rights and marketing activities.