Can the Franchisor change the System used by Cilantro Taco Grill franchisees?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
| mployee Name: | (the “Employee”) |
|---|---|
| Date of Hire: | |
| Restaurant Address: |
RECITATIONS
Through the expenditure of considerable time, effort and money, Franchisor has developed and established unique fast-casual restaurant businesses featuring authentic Mexican food, such as tacos, burritos, salads, and tortas under the Cilantro Taco Grill trademarks, and using Franchisor's confidential operations manual ("Manual") of business practices and policies, and Franchisor's distinctive, décor, fixtures and furnishings, operations methods, sales techniques, inventory, procedures for management control and training, assistance, advertising, and promotional programs, all of which may be changed, improved or further developed by Franchisor at any time (taken together herein the "System").
Source: Item 23 — RECEIPT (FDD pages 52–208)
What This Means (2024 FDD)
According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, the franchisor has the right to modify the System. The System includes the confidential operations manual, business practices, policies, décor, fixtures, furnishings, operations methods, sales techniques, inventory, procedures for management control and training, assistance, advertising, and promotional programs. These elements may be changed, improved, or further developed by Cilantro Taco Grill at any time.
This means that a franchisee must adapt to any changes Cilantro Taco Grill makes to its operating procedures, restaurant design, marketing strategies, and other aspects of the business. While such changes could enhance the brand and improve efficiency, they could also require the franchisee to incur unexpected expenses to implement the new standards.
The franchisee agreement requires franchisees to operate their Cilantro Taco Grill outlets in strict conformity with the System, as it may be changed from time to time. This underscores the importance of a franchisee's ability to remain flexible and adaptable to evolving brand standards and operational practices. Franchisees should discuss with the franchisor the types of changes that have been implemented in the past and the potential costs associated with future changes.