What is the latest point at which the initial franchise fee must 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 is due upon signing the Franchise Agreement. This fee is paid as a lump sum using cash or available funds directly to Cilantro Taco Grill.
For prospective franchisees, this means that the $35,000 initial franchise fee must be paid when the franchise agreement is signed. This is a standard practice in franchising, as the initial fee compensates the franchisor for granting the franchise rights and providing initial support and training.
It is important to note that this fee is separate from other initial investment costs, such as training expenses, premises deposits, and rent, which are paid to different entities and at different times. Additionally, the FDD mentions incentive programs that may offer a discount on the Initial Franchise Fee, so prospective franchisees should inquire about these programs.