What kind of advertising and promotional materials does Cilantro Taco Grill provide to franchisees?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchise Agreement, Section 7.8).
- e. From time to time, as may become available, we will provide you with samples or digital artwork, advertising and promotional materials (Franchise Agreement, Section 10.6).
- f. We will conduct inspections of your Franchised Business, at the frequency and duration that we deem advisable. Such inspections include evaluating your service and premises to ensure that they meet our standards (Franchise Agreement, Section 10.4).
- g. We will provide you with any written specifications for required equipment, products and services and updated lists of any approved suppliers of these items (Franchise Agreement, Section 10.7).
- h. Subject to applicable law, we will recommend maximum prices to charge for products and services at your Cilantro Taco Grill outlet (Franchise Agreement, Section 12.5). We do not determine the minimum prices that you must charge.
- i. We will approve or disapprove of all advertising, direct mail, and other promotional material and campaigns you propose in writing to us. We will respond within 15 days, either accepting or rejecting the proposed material and/or campaign; however, if we do not respond within 15 days, the proposed material and/or campaign is deemed "disapproved". (Franchise Agreement, Section 13.6).
- j. Subject to applicable law, we will recommend maximum prices to charge for products and services at your Cilantro Taco Grilloutlet (Franchise Agreement, Section 12.5). We do not determine the minimum prices that you must charge.
4. Advertising
Local Advertising (Franchise Agreement, Sections 13.2 and 13.6)
We require you to spend $15,000 in grand opening advertising and promotional activities prior to and within the first 30 days following the opening of your Franchised Business in your territory. Thereafter, you are required to spend at least 1% of monthly Gross Revenue on advertising for the Franchised Business in your territory. Local Advertising may include promotion and marketing through social media platforms, with our prior approval. Local Advertising expenditures also include contributions to a marketing fund operated by your landlord. We must approve all advertising materials. We reserve the right to collect some or all of your grand opening funds and/or your Local Advertising expenditure and implement grand opening campaign activities and/or Local Advertising on your behalf.
You may develop advertising materials for your own use at your own cost, and you may use marketing materials that we may offer to you from time to time.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 26–33)
What This Means (2024 FDD)
According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, the company offers samples or digital artwork, advertising, and promotional materials to franchisees as they become available. However, Cilantro Taco Grill does not provide placement of local advertising and has no obligation to spend any amount on advertising in the franchisee's area or territory. Franchisees are responsible for local advertising placement.
Cilantro Taco Grill requires franchisees to spend $15,000 on grand opening advertising and promotional activities before and within the first 30 days of opening. After that, franchisees must spend at least 1% of monthly Gross Revenue on local advertising. Local advertising may include promotion and marketing through social media platforms, with Cilantro Taco Grill's prior approval. These expenditures may also include contributions to a marketing fund operated by the landlord. All advertising materials must be approved by Cilantro Taco Grill, and the company reserves the right to collect grand opening funds or local advertising expenditures to implement campaigns on the franchisee's behalf.
Franchisees can develop their own advertising materials at their own cost or use marketing materials offered by Cilantro Taco Grill from time to time. Franchisees must participate in any other advertising, promotional, or marketing programs, with costs varying depending on the promotion but not exceeding $600 per day. These costs may include labor, marketing materials, furniture, equipment, and/or food. Franchisees must get written approval from Cilantro Taco Grill before using any advertising or marketing materials, including press releases. Franchisees also need prior written approval to maintain any business profile on social media sites.