What are the key components of the Cilantro Taco Grill Franchisee Acknowledgment as outlined in Exhibit H?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
EXHIBIT H FRANCHISEE ACKNOWLEDGEMENT STATEMENT
As you know, CTG Franchise LLC (the "Franchisor") and you are preparing to enter into a franchise agreement (the "Franchise Agreement") for the establishment and operation of a Cilantro Taco Grill franchised business (the "Franchised Business"). The purpose of this Questionnaire is to determine whether any statements or promises were made to you by employees or authorized representatives of the Franchisor, or by employees or authorized representatives of Fransmart, LLC ("Fransmart") that have not been authorized, or that were not disclosed in the Disclosure Document or that may be untrue, inaccurate or misleading. The Franchisor, through the use of this document, desires to ascertain (a) that the undersigned, individually and as a representative of any legal entity established to acquire the franchise rights, fully understands and comprehends that the purchase of a franchise is a business decision, complete with its associated risks, and (b) that you are not relying upon any oral statement, representations, promises or assurances during the negotiations for the purchase of the franchise which have not been authorized by Franchisor.
Source: Item 22 — CONTRACTS (FDD pages 51–52)
What This Means (2024 FDD)
According to the 2024 Cilantro Taco Grill Franchise Disclosure Document, Exhibit H, the Franchisee Acknowledgment Statement, serves to confirm that the franchisee understands they are making a business decision with associated risks. It aims to verify that the franchisee isn't relying on unauthorized or undisclosed statements made during negotiations. This acknowledgment is a critical component of the franchise agreement process.
The acknowledgment seeks to determine if any unauthorized statements or promises were made by Cilantro Taco Grill employees, authorized representatives, or Fransmart, LLC, that were not disclosed in the Disclosure Document or that may be untrue, inaccurate, or misleading. This protects Cilantro Taco Grill from potential misrepresentations made during the sales process.
Cilantro Taco Grill uses this document to ascertain that the franchisee understands the purchase of a franchise is a business decision with associated risks and that they are not relying on any oral statements, representations, promises, or assurances during the negotiations for the purchase of the franchise which have not been authorized by Cilantro Taco Grill. This ensures that the franchisee is making an informed decision based on the official information provided by the franchisor.