What is the initial franchise fee for a Cilantro Taco Grill franchise?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
5: INITIAL FEES**
We will charge you an initial franchise fee ("Initial Franchise Fee") when you sign the Franchise Agreement. The Initial Franchise Fee is $35,000. This payment is fully earned by us and due in lump sum when you sign the Franchise Agreement. The Initial Franchise Fee is not refundable under any circumstance.
If we perform an on-site location evaluation of the prospective site for the Franchised Business, you must pay to us our per diem fee of $500 and reimburse our representative's expenses, including travel, lodging and meals.
You must spend $15,000 on a grand opening advertising campaign to promote the opening of the Franchised Business. We reserve the right to collect this money from you and conduct the grand opening advertising campaign on your behalf. If we collect this money from you for the grand opening advertising campaign, it is non-refundable.
If your Franchised Business does not open within 12 months after you have signed the Franchise Agreement, except for circumstances that are not in your control, you must pay to us a delayed opening fee of $100 per day for each day that the opening of your Franchised Business is delayed, up to a maximum of 90 additional days. If your Store is not open after this additional 90 day period, then we may terminate your Franchise Agreement or we may require you to continue paying the delayed opening fee until your Store has opened. This fee is not refundable. If you are a Multi-Unit Operator and your Franchised Business does not open by the opening date provided in the Multi-Unit Operator Agreement, then you will pay the same delayed op
Source: Item 5 — INITIAL FEES (FDD pages 11–12)
What This Means (2024 FDD)
According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, the initial franchise fee is $35,000. This fee is due in a lump sum when the Franchise Agreement is signed. Cilantro Taco Grill considers this payment fully earned upon signing and specifies that it is non-refundable under any circumstances.
In addition to the initial franchise fee, prospective franchisees should be aware of other potential fees. If Cilantro Taco Grill performs an on-site location evaluation, the franchisee must pay a per diem fee of $500, along with reimbursing the representative's expenses for travel, lodging, and meals. Franchisees are also required to spend $15,000 on a grand opening advertising campaign to promote the new Cilantro Taco Grill location. Cilantro Taco Grill reserves the right to manage this campaign and collect the funds, in which case the $15,000 is also non-refundable.
Furthermore, the FDD outlines a delayed opening fee. If a Cilantro Taco Grill franchise does not open within 12 months of signing the Franchise Agreement (excluding circumstances outside the franchisee's control), a fee of $100 per day is imposed for each day of delay, up to a maximum of 90 days. If the store remains unopened after this additional 90-day period, Cilantro Taco Grill may terminate the Franchise Agreement or require continued payment of the delayed opening fee until the store opens. This fee is also non-refundable. Multi-unit operators face the same delayed opening fee if their franchise does not open by the date specified in their agreement.