How must the initial franchise fee be paid to Cilantro Taco Grill?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
| YOUR ESTIMATED INITIAL INVESTMENT | ||||
|---|---|---|---|---|
| (Single Unit) | ||||
| Type of Expenditure | Amount | Method of Payment | To Whom Payment is Made | |
| Initial Franchise Fee1 | $35,000 | Lump sum payment in cash or available funds | Upon signing the Franchise Agreement. | Us |
| Delayed Opening Fee | $0 - $9,000 | As required by Us | As incurred | Us |
| Your Training Expenses2 | $1,500 - $4,000 | As required for transportation, lodging & meals | As required by suppliers of transportation, lodging & meals. |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 18–21)
What This Means (2024 FDD)
According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, the initial franchise fee of $35,000 must be paid as a lump sum in cash or available funds. This payment is due upon signing the Franchise Agreement and is to be paid directly to Cilantro Taco Grill. This fee grants you the right to operate a single Cilantro Taco Grill location.
For multi-unit operators, the Development Fee for 5 outlets is $140,000, also payable as a lump sum in cash or available funds upon signing the Multi-Unit Operator Agreement, and is paid to Cilantro Taco Grill.
Understanding the payment terms and schedule is crucial for prospective franchisees as it directly impacts their initial financial planning. Franchisees should ensure they have the required funds readily available to meet these obligations when they sign the franchise agreement.