How is 'permanent disability' defined in the Cilantro Taco Grill Multi-Unit Operator agreement?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
- 6.6 Death or Permanent Disability. The grant of rights under this Agreement is personal to Multi-Unit Operator, and on the death or permanent disability of Multi-Unit Operator, the executor, administrator, conservator, or other personal representative of Multi-Unit Operator shall be required to transfer Multi-Unit Operator's interest in this Agreement within six (6) months from the date of death or permanent disability to a third party approved by Franchisor. Failure to transfer in accordance with the forgoing will constitute a material default and all that is granted by this Agreement will terminate. A transfer under this Section 6.6, including without limitation, transfer by devise or inheritance, is subject to the conditions for Transfers in this Article 6 and unless transferred by gift, devise, or inheritance, subject to the terms of Section 6.5 above. For purposes of this Agreement, the term "permanent disability" means a mental or physical disability, impairment or condition that is reasonably expected to prevent or actually does prevent such person from providing continuous and material supervision of the operation of Multi-Unit Operator's Cilantro Taco Grill outlet(s) and remaining development schedule during the six (6)-month period from its onset.
Source: Item 23 — RECEIPT (FDD pages 52–208)
What This Means (2024 FDD)
According to the 2024 Cilantro Taco Grill Franchise Disclosure Document, the Multi-Unit Operator agreement defines "permanent disability" as a mental or physical condition that is reasonably expected to prevent the operator from providing continuous and material supervision of the Cilantro Taco Grill outlet(s) and remaining development schedule for at least six months from the onset of the disability.
If a Multi-Unit Operator experiences death or permanent disability, their interest in the agreement must be transferred within six months to a third party approved by Cilantro Taco Grill. Failure to do so constitutes a material default, leading to the termination of the agreement. Any transfer is subject to the conditions outlined in the agreement, including those related to transfers and rights of first refusal.
During the period following death or permanent disability, an interim successor manager, satisfactory to Cilantro Taco Grill, must supervise the Multi-Unit Operator's Cilantro Taco Grill outlet(s) and remaining development schedule. Alternatively, Cilantro Taco Grill may provide interim management, charging a fee equal to 8% of the Gross Revenue generated by the Multi-Unit Operator's Cilantro Taco Grill outlet(s), plus all costs of travel, lodging, meals, and other expenses reasonably incurred.