When must a Cilantro Taco Grill franchisee submit their contribution to the regional advertising cooperative for the preceding quarter?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
13.4.7 no later than the fifteenth (15th) day following the close of each quarter, each member/franchisee must submit its contribution under Section 13.4.6 for the preceding quarter to the regional advertising cooperative, together with such other statements or reports as Franchisor or the regional advertising cooperative may require, with Franchisor's prior written approval; and
13.4.8 if an impasse occurs because of a regional advertising cooperative members' inability or failure, within forty-five (45) days, to resolve any issue affecting the regional advertising cooperative's establishment or effective functioning, upon request of any regional advertising cooperative member, that issue must be submitted to Franchisor for consideration, and Franchisor's resolution of such issue is final and binding on all regional advertising cooperative members.
Source: Item 23 — RECEIPT (FDD pages 52–208)
What This Means (2024 FDD)
According to the 2024 Cilantro Taco Grill Franchise Disclosure Document, if a regional advertising cooperative is established, franchisees must submit their contribution for the preceding quarter no later than the fifteenth day following the close of each quarter. This contribution is made under Section 13.4.6 of the agreement. Franchisees must also include any other statements or reports that Cilantro Taco Grill or the regional advertising cooperative may require, with Cilantro Taco Grill's prior written approval.
This means that a Cilantro Taco Grill franchisee needs to be diligent about tracking quarterly sales and calculating the advertising contribution, ensuring it is submitted by the 15th day after the quarter ends. For example, if the quarter ends on March 31st, the contribution must be submitted by April 15th. This requirement ensures that the regional advertising cooperative has timely access to funds for marketing and promotional activities.
Furthermore, if there is an impasse among the regional advertising cooperative members that affects the establishment or functioning of the cooperative, and it cannot be resolved within 45 days, the issue must be submitted to Cilantro Taco Grill for resolution. Cilantro Taco Grill's decision on the matter is final and binding for all members of the regional advertising cooperative. This clause highlights the importance of franchisee participation in the cooperative and the ultimate authority of Cilantro Taco Grill in resolving disputes.