Is Cilantro Taco Grill obligated to own or lease a site to the franchisee?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
We will not own and/or lease a site to you.
You are responsible for negotiating a lease with the owner of a site we approve.
Any lease must include our Conditional Assignment of Lease Agreement, a copy of which is attached to the Franchise Agreement as Attachment 5 (Franchise Agreement, Sections 8.1.2, 8.1.3 10.1).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 26–33)
What This Means (2024 FDD)
According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, the company is not obligated to own or lease a site to its franchisees. The FDD states that the franchisee is responsible for negotiating a lease with the owner of an approved site.
Cilantro Taco Grill will provide site selection guidelines and must approve the franchisee's chosen location. The company evaluates factors such as the location and neighborhood, distance from other franchise territories, proximity to roads and residential areas, traffic patterns, the condition of the premises, tenant mix, and area demographics. The franchisee must submit a written request for approval within 60 days of signing the Franchise Agreement, and Cilantro Taco Grill will respond within 30 days, either accepting or rejecting the proposed location.
If a franchisee fails to secure an approved site within 60 days of signing the Franchise Agreement, Cilantro Taco Grill reserves the right to terminate the agreement. Additionally, any lease agreement the franchisee enters into must include Cilantro Taco Grill’s Conditional Assignment of Lease Agreement, which is attached to the Franchise Agreement.