Is the initial franchise fee for each additional Cilantro Taco Grill outlet the same as the first?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
For each subsequent Cilantro Taco Grill outlet to be established hereunder, Multi-Unit Operator shall execute and deliver to Franchisor Franchisor's then-current form of Franchise Agreement, which shall be presented to Multi-Unit Operator together with Franchisor's then-current Franchise Disclosure Document.
The then-current form of Franchise Agreement may differ from the current form of Franchise Agreement; provided however, the initial franchise fee for each additional outlet shall be the applicable amount set forth in in Section 4.1 hereof, and the royalty fee and local advertising will remain the same as the first franchise agreement.
Further, Multi-Unit Operator acknowledges and agrees that Multi-Unit Operator shall not receive any initial training related to each additional Cilantro Taco Grill outlet.
Source: Item 23 — RECEIPT (FDD pages 52–208)
What This Means (2024 FDD)
According to the 2024 Cilantro Taco Grill Franchise Disclosure Document, the initial franchise fee for each additional outlet will be the amount set in Section 4.1 of the agreement, and the royalty fee and local advertising costs will remain the same as the first franchise agreement. However, multi-unit operators will not receive initial training for each additional Cilantro Taco Grill outlet beyond the first.
This means that while the initial franchise fee remains consistent, franchisees should factor in that they will not receive additional initial training for subsequent locations. This could represent a cost savings for Cilantro Taco Grill, but it places a greater burden on the franchisee to ensure they and their staff are adequately trained to operate each new location successfully.
Prospective franchisees should carefully consider the implications of foregoing initial training for additional locations and ensure they have the resources and expertise to manage multiple Cilantro Taco Grill outlets effectively. They should also review Section 4.1 of the franchise agreement to understand how the initial franchise fee is determined for multi-unit operators.