Are the local advertising fees the same for each additional Cilantro Taco Grill franchise agreement?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
For each subsequent Cilantro Taco Grill outlet to be established hereunder, Multi-Unit Operator shall execute and deliver to Franchisor Franchisor's then-current form of Franchise Agreement, which shall be presented to Multi-Unit Operator together with Franchisor's then-current Franchise Disclosure Document.
The then-current form of Franchise Agreement may differ from the current form of Franchise Agreement; provided however, the initial franchise fee for each additional outlet shall be the applicable amount set forth in in Section 4.1 hereof, and the royalty fee and local advertising will remain the same as the first franchise agreement.
Source: Item 23 — RECEIPT (FDD pages 52–208)
What This Means (2024 FDD)
According to the 2024 Cilantro Taco Grill Franchise Disclosure Document, for multi-unit operators, the local advertising fees will remain the same as the first franchise agreement for each additional franchise agreement.
This means that if a multi-unit operator decides to open multiple Cilantro Taco Grill locations, the local advertising fee structure outlined in the initial franchise agreement will be applied to all subsequent franchise agreements. This provides consistency and predictability in terms of advertising costs for each location.
This clause ensures that the financial terms related to advertising are standardized across all franchise agreements within a multi-unit operation, simplifying budgeting and financial planning for the franchisee. It is important for prospective multi-unit franchisees to carefully review the initial franchise agreement to understand the specific local advertising fee requirements, as these will apply to all additional locations they develop.