If a Cilantro Taco Grill franchisee wishes to relocate, what must they do regarding site selection?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
ement, unless you are in default of your obligations to us.
You may not change the location of your Franchised Business, without our written consent, which we may withhold in our sole discretion. If we give our consent, we will charge you a relocation fee equal to $1,500 in addition to our actual costs and expenses. The conditions under which we may allow you to relocate include the following: loss of your premises not due to your default, demographics of the surrounding area, proximity to other Cilantro Taco Grill outlets, lease requirements, traffic patterns, vehicular and pedestrian access, proximity to major roads, available parking, and overall suitability. If you wish to relocate, you must identify a new location for the Franchised Business that meets our approval, in accordance with our then-current site selection procedures, and build out the approved location within 120 days. If you do not identify a site and complete the build-out within this time period, we may terminate the Franchise Agreement. You must continue to operate at your origi
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 cannot change the location of their franchised business without written consent from Cilantro Taco Grill, which may be withheld at their discretion. If consent is given, Cilantro Taco Grill will charge a relocation fee of $1,500, in addition to their actual costs and expenses.
Conditions under which Cilantro Taco Grill may allow relocation include loss of premises not due to the franchisee's default, demographics of the surrounding area, proximity to other Cilantro Taco Grill outlets, lease requirements, traffic patterns, vehicular and pedestrian access, proximity to major roads, available parking, and overall suitability. If a franchisee wishes to relocate, they must identify a new location for the Franchised Business that meets Cilantro Taco Grill's approval, in accordance with their then-current site selection procedures, and build out the approved location within 120 days.
If the franchisee does not identify a site and complete the build-out within this 120-day timeframe, Cilantro Taco Grill may terminate the Franchise Agreement. The franchisee must continue to operate at their original premises until construction of the new site is complete. This means a franchisee bears the risk of continued operation at the original site while simultaneously investing in the new location. This process ensures that any new location aligns with Cilantro Taco Grill's strategic objectives and brand standards, but also places a significant burden on the franchisee to manage the transition effectively and within a limited time frame.