Where is the Mandatory Development Schedule located in the Cilantro Taco Grill FDD?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
Subsequent to Multi-Unit Operator's signing of this Agreement and the initial Franchise Agreement, and provided that all conditions in Section 5.4 hereof are satisfied or waived, then upon acceptance of each subsequent Cilantro Taco Grill outlet to be developed under the Mandatory Development Schedule, Multi-Unit Operator shall execute an additional Franchise Agreement, containing the accepted street address, for the development of a Cilantro Taco Grill outlet Notwithstanding the foregoing, Multi-Unit Operator shall open the Cilantro Taco Grill outlets in accordance with the Mandatory Development Schedule attached hereto as Attachment 3.
Source: Item 23 — RECEIPT (FDD pages 52–208)
What This Means (2024 FDD)
According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, the Mandatory Development Schedule is included as Attachment 3. This schedule outlines the specific obligations of the Multi-Unit Operator to establish and operate a certain number of Cilantro Taco Grill restaurants within a designated Development Area, with a separate Franchise Agreement required for each restaurant.
The FDD emphasizes that adhering to the Mandatory Development Schedule is critical, as failure to do so constitutes a material breach of the agreement. The Multi-Unit Operator is responsible for site selection, and the acceptance of a site by Cilantro Taco Grill does not guarantee the restaurant's profitability.
Multi-Unit Operators must sign the initial Franchise Agreement concurrently with the Multi-Unit Operator Agreement and then execute additional Franchise Agreements for each subsequent Cilantro Taco Grill outlet. 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.