What materials is a Cilantro Taco Grill franchisee allowed to retain after termination of the franchise agreement?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
ection with collection of any amounts owed to Franchisor and/or enforcement of Franchisor's rights under this Agreement.
18. POST-TERMINATION.
- 18.1 Franchisee's Obligations. Upon termination or expiration of this Agreement, all rights and licenses granted hereunder to Franchisee shall immediately terminate and Franchisee and each Principal, if any, shall:
- 18.1.1 immediately cease to operate the Franchised Business, and shall not thereafter, directly or indirectly identify himself, herself or itself as a current Cilantro Taco Grill owner, franchisee or licensee;
- 18.1.2 immediately and permanently cease to use the Marks, any imitation of any Mark, logos, copyrighted material or other intellectual property, confidential or proprietary material or indicia of a Cilantro Taco Grill restaurant, or use any trade name, trade or service mark or other commercial symbol that suggests an association with Franchisor, Licensor, or the System. In particular, Franchisee shall cease to use, without limitation, all signs, billboards, advertising materials, displays, stationery, forms and any other articles, which display the Marks;
- 18.1.3 take such action as may be necessary to cancel any assumed name or equivalent registration that contains the Mark or any other service mark or trademark of Franchisor, and Franchisee shall furnish Franchisor with evidence of compliance with this obligation, which is satisfactory to Franchisor, within five (5) days after termination or expiration of this Agreement;
- 18.1.4 promptly pay all sums owing to Franchisor and its affiliates. Such sums shall include all damages, costs and expenses, including reasonable attorneys' fees, incurred by Franchisor as a result of any default by Franchisee. The payment obligation herein shall give rise to and remain, until paid in full, a lien in favor of Franchisor against any and all of the personal property, furnishings, equipment, fixtures, and inventory owned by Franchisee and located at the Franchised Business location at the time of default;
Source: Item 23 — RECEIPT (FDD pages 52–208)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, a Cilantro Taco Grill franchisee must cease all operations as a franchisee immediately after termination or expiration of the franchise agreement. The franchisee must not identify as a current Cilantro Taco Grill owner, franchisee, or licensee.
The franchisee must immediately and permanently stop using all Cilantro Taco Grill trademarks, logos, copyrighted material, and other intellectual property. This includes refraining from using any signs, billboards, advertising materials, displays, stationery, forms, or any other items that display the Cilantro Taco Grill marks. The franchisee is also obligated to cancel any assumed name registrations that contain Cilantro Taco Grill's trademarks and provide evidence of cancellation to the franchisor within five days of termination or expiration.
Upon termination, Cilantro Taco Grill has the option to purchase the franchisee's furnishings, equipment, signs, fixtures, advertising materials, supplies, and inventory related to the business. This purchase would be at the franchisee's cost or fair market value, whichever is less. The assets must be free of any liens or encumbrances, and Cilantro Taco Grill assumes no liabilities unless otherwise agreed in writing. The FDD does not explicitly state what, if any, materials a franchisee is allowed to retain.