How often does a Cilantro Taco Grill franchisee pay the royalty fee?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee is required to contribute a percentage of the Gross Revenue generated weekly by Franchisee's Franchised Business to the Worldwide Creative Marketing Fund, as determined by Franchisor ("Worldwide Creative Marketing Fee"). Franchisor reserves the right, in Franchisor's sole discretion and at any time and from time to time, to increase the amount of the Worldwide Creative Marketing Fee to any amount not to exceed two percent (2%) of Franchisee's Gross Revenue. Payments will be made in the same manner and time as the Royalty Fees.
Source: Item 23 — RECEIPT (FDD pages 52–208)
What This Means (2024 FDD)
According to the 2024 Cilantro Taco Grill Franchise Disclosure Document, royalty fees are paid in the same manner and time as the Worldwide Creative Marketing Fee. The FDD states that franchisees are required to contribute a percentage of their Gross Revenue weekly to the Worldwide Creative Marketing Fund. Therefore, royalty fees are also paid weekly.
This weekly payment schedule means that franchisees must maintain consistent cash flow to meet their financial obligations to Cilantro Taco Grill. It also allows the franchisor to receive a steady stream of income, which can be used to support the brand and provide services to franchisees.
Prospective franchisees should carefully consider the implications of weekly royalty payments and ensure they have a solid financial plan in place. Understanding the specific percentage of Gross Revenue required for both the royalty fee and the Worldwide Creative Marketing Fee is crucial for accurate financial forecasting.