What is the relocation fee charged by Cilantro Taco Grill if a franchisee relocates?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
ement, unless you are in default of your obligations to us.
You may not change the location of your Franchised Business, without our written consent, which we may withhold in our sole discretion. If we give our consent, we will charge you a relocation fee equal to $1,500 in addition to our actual costs and expenses. The conditions under which we may allow you to relocate include the following: loss of your premises not due to your default, demographics of the surrounding area, proximity to other Cilantro Taco Grill outlets, lease requirements, traffic patterns, vehicular and pedestrian access, proximity to major roads, available parking, and overall suitability. If you wish to relocate, you must identify a new location for the Franchised Business that meets our approval, in accordance with our then-current site selection procedures, and build out the approved location within 120 days. If you do not identify a site and complete the build-out within this time period, we may terminate the Franchise Agreement. You must continue to operate at your origi
Source: Item 12 — TERRITORY (FDD pages 33–35)
What This Means (2024 FDD)
According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, a franchisee must obtain written consent from Cilantro Taco Grill before relocating their franchised business. Cilantro Taco Grill may withhold this consent at their discretion. If consent is granted, Cilantro Taco Grill charges a relocation fee.
The relocation fee is $1,500, in addition to the franchisor's actual costs and expenses. The FDD outlines specific conditions under which Cilantro Taco Grill may allow a franchisee to relocate. These conditions include loss of the current premises not due to the franchisee's default, demographics of the surrounding area, proximity to other Cilantro Taco Grill outlets, lease requirements, traffic patterns, vehicular and pedestrian access, proximity to major roads, available parking, and overall suitability of the new location.
If a franchisee wishes to relocate, they must identify a new location that meets Cilantro Taco Grill's approval, following the then-current site selection procedures. The franchisee must complete the build-out of the approved location within 120 days. Failure to identify a suitable site and complete the build-out within this timeframe may result in the termination of the Franchise Agreement by Cilantro Taco Grill. The franchisee is required to continue operating at their original premises until construction of the new site is finished.