Who receives payment for the on-site location evaluation fee for a Cilantro Taco Grill franchise?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
| YOUR ESTIMATED INITIAL INVESTMENT | ||||
|---|---|---|---|---|
| (Single Unit) | ||||
| Type of Expenditure | Amount | Method of Payment | To Whom Payment is Made | |
| Initial Franchise Fee1 | $35,000 | Lump sum payment in cash or available funds | Upon signing the Franchise Agreement. |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 18–21)
What This Means (2024 FDD)
According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, the on-site location evaluation fee, which ranges from $0 to $500, is paid to Cilantro Taco Grill itself. This payment is made as a lump sum in cash or available funds before the evaluation takes place.
This fee covers the franchisor's costs associated with assessing a potential location for a new Cilantro Taco Grill franchise. The evaluation helps determine if the site meets the brand's criteria for success, considering factors like visibility, accessibility, and local market conditions. The fact that the fee is paid upfront highlights its importance in the early stages of establishing a franchise.
Prospective franchisees should confirm with Cilantro Taco Grill the specific services included in the on-site location evaluation and understand the criteria used to assess potential locations. It would also be prudent to inquire about the circumstances under which the fee might be non-refundable, such as if the franchisee decides not to proceed with the location after the evaluation.