Does Cilantro Taco Grill provide its criteria for approving items and suppliers to franchisees?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
cts to our franchisees.
We approve suppliers after careful review of the quality of the products they provide to us and you. If you would like us to consider another item or supplier, you must make such request in writing to us and have the supplier give us samples of its product or service and such other information that we may require. If the item and/or supplier meet our specifications, as we determine in our sole discretion, we will approve it as an additional item or supplier. We will make a good-faith effort to notify you whether we approve or disapprove of the proposed item or supplier within 30 days after we receive all required information to evaluate the product or service. If we do not approve any request within 30 days, it is deemed unapproved. We reserve the right to revoke approval of any item or supplier that does not continue to meet our then-current standards
upon written notice to you. Our criteria for approving items and suppliers are not available to you. If you request that we approve a proposed item or supplier, we reserve the right to charge an Evaluation Fee equal to our actual costs of inspection and testing.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 22–24)
What This Means (2024 FDD)
According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, the specific criteria for approving items and suppliers are not disclosed to franchisees. However, Cilantro Taco Grill does outline the process for requesting approval of alternative items or suppliers. A franchisee must submit a written request and provide samples and other required information for evaluation.
Cilantro Taco Grill will then make a good-faith effort to notify the franchisee of approval or disapproval within 30 days of receiving all necessary information. Failure to respond within 30 days is considered a disapproval. Cilantro Taco Grill retains the right to revoke approval of any item or supplier that no longer meets their standards. Additionally, Cilantro Taco Grill may charge an Evaluation Fee to cover the costs of inspection and testing of the proposed item or supplier.
This policy is fairly common in franchising, as franchisors want to maintain quality and consistency across all locations. While the exact criteria remain proprietary, the process allows franchisees to suggest alternatives, providing some flexibility. The potential for evaluation fees should be considered, and franchisees should weigh the costs and benefits before requesting approval of a new supplier or item. Franchisees are required to purchase equipment, fixtures, inventory, supplies, and services from designated suppliers and contractors or according to Cilantro Taco Grill's specifications.