How long does Cilantro Taco Grill have to notify a franchisee of its decision regarding an unapproved supplier?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
he supplier. Franchisor reserves the right to charge Franchisee a fee equal to the actual cost and expense for inspection and testing. Franchisor shall notify Franchisee whether Franchisor approves or disapproves of the proposed item or supplier within thirty (30) days after Franchisor receives all required information to evaluate the product, service or supplier. Franchisor reserves the right, at its option, to re-inspect from time to time the facilities and products of any such approved supplier and to revoke its approval upon the supplier's failure to continue to meet any of Franchisor's then-current criteria. Nothing in the foregoing shall be construed to require Franchisor to approve any particular item or supplier. In the event Franchisee sells any product or performs any services that Franchisor has not prescribed, approved or authorized, Franchisee shall immediately upon notice from Franchisor: (i) cease and desist offering or providing the unauthorized or unapproved product or service (ii) pay to Franchisor, on demand, a prohibited product or service fine equal to Two Hundred Fifty Dollars ($250.00) per
Source: Item 23 — RECEIPT (FDD pages 52–208)
What This Means (2024 FDD)
According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, the company has 30 days to notify a franchisee whether it approves or disapproves a proposed item or supplier. This 30-day period starts after Cilantro Taco Grill receives all the necessary information to evaluate the product, service, or supplier.
This means that if you, as a franchisee, want to use a supplier that isn't already approved, you need to submit all the required information to Cilantro Taco Grill. The franchisor then has 30 days to review the information and make a decision. It is important to provide all required information to the franchisor in a timely manner, as the review period only begins once all information is received.
Cilantro Taco Grill also retains the right to re-inspect the facilities and products of any approved supplier periodically and can revoke approval if the supplier fails to meet the company's current standards. However, Cilantro Taco Grill is not obligated to approve any specific item or supplier, giving them discretion in these decisions. If a franchisee sells any product or performs any services that Cilantro Taco Grill has not approved, the franchisee must stop offering the unapproved item immediately upon notice from the franchisor and pay a fine of $250 per day for each day the unapproved item was offered after receiving written notice.