factual

Does Cilantro Taco Grill provide the franchisee with the actual construction of the franchised business?

Cilantro_Taco_Grill Franchise · 2024 FDD

Answer from 2024 FDD Document

  • 10.2 Construction.

Provide to Franchisee criteria and specifications for a Cilantro Taco Grill outlet.

Such criteria and specifications include, but are not necessarily limited to, criteria with respect to required food storage and preparation, waste removal and ventilation systems.

Franchisee shall independently, and at Franchisee's expense, have such criteria and specifications incorporated into the construction of the Franchised Business in accordance with Article 8.

Source: Item 23 — RECEIPT (FDD pages 52–208)

What This Means (2024 FDD)

According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, the franchisor does not provide the actual construction of the franchised business. Instead, Cilantro Taco Grill provides franchisees with the criteria and specifications required for a Cilantro Taco Grill outlet. These specifications include criteria for food storage and preparation, waste removal, and ventilation systems.

The franchisee is then responsible for independently incorporating these criteria and specifications into the construction of their Cilantro Taco Grill location, and at their own expense. This means the franchisee will need to manage the construction process themselves, ensuring that all criteria are met according to Article 8 of the franchise agreement.

This arrangement places the onus on the franchisee to manage the construction of their restaurant, which can be both a benefit and a risk. The benefit is greater control over the construction process, allowing for customization and potentially cost savings. The risk is the responsibility for ensuring all specifications are correctly implemented, and any errors or omissions could lead to non-compliance and additional expenses. Prospective franchisees should carefully review Article 8 of the franchise agreement to fully understand their obligations regarding construction.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.