What is the nature of the agreement between Cilantro Taco Grill and Armando Perez?

Based on the 2024 Franchise Disclosure Document, the relationship between Cilantro Taco Grill and Armando Perez would be defined by the specific type of agreement they enter into. The FDD outlines two potential agreements: a standard Franchise Agreement for a single unit or a Multi-Unit Operator Agreement for developing multiple locations. The Franchise Agreement grants the right to operate a Cilantro Taco Grill restaurant at a single location within a protected territory, using the brand's operating procedures and standards.

If Armando Perez signs a Franchise Agreement, he gains the right to operate a single Cilantro Taco Grill location. The agreement specifies that Cilantro Taco Grill will not operate or authorize another franchisee to operate a Cilantro Taco Grill outlet within Armando's territory, as long as he remains in compliance with the agreement. However, Cilantro Taco Grill retains the right to operate or franchise outlets bordering the territory. Armando is restricted from soliciting customers outside his designated territory and through alternative distribution channels.

Alternatively, if Armando Perez enters into a Multi-Unit Operator Agreement with Cilantro Taco Grill, he would be granted the right to open a minimum of 5 Cilantro Taco Grill outlets in a designated development area. In this case, Armando must sign a separate Franchise Agreement for each individual Cilantro Taco Grill location he develops under the Multi-Unit Operator Agreement. The Multi-Unit Operator Agreement itself does not grant the right to operate a Cilantro Taco Grill, but sets forth the conditions to enter into a Franchise Agreement.

Without knowing which agreement Armando Perez has with Cilantro Taco Grill, it is difficult to define the relationship. A prospective franchisee should ask the franchisor which agreement is applicable.