Does Cilantro Taco Grill require franchisees to perform grand opening advertising?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
ranchise Agreement, Sections 13.2 and 13.6)
We require you to spend $15,000 in grand opening advertising and promotional activities prior to and within the first 30 days following the opening of your Franchised Business in your territory. Thereafter, you are required to spend at least 1% of monthly Gross Revenue on advertising for the Franchised Business in your territory. Local Advertising may include promotion and marketing through social media platforms, with our prior approval. Local Advertising expenditures also include contributions to a marketing fund operated by your landlord. We must approve all advertising materials. We reserve the right to collect some or all of your grand opening funds and/or your Local Advertising expenditure and implement grand opening campaign activit
Source: Item 10 — Initial Inventory. This estimate is for the cost of the initial inventory sufficient for approximately 3 months of operation. Your initial inventory will include ingredients and supplies, containers, cleaning products, and other disposables. (FDD pages 21–22)
What This Means (2024 FDD)
According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, franchisees are required to conduct grand opening advertising. Specifically, a franchisee must spend $15,000 on local advertising and promotional activities to promote the opening of their location. This spending must occur 30 days prior to and within the first 30 days after opening.
The grand opening campaign must be conducted according to a plan approved by Cilantro Taco Grill. Franchisees cannot use a grand opening advertising campaign until they receive approval from Cilantro Taco Grill, and any alterations must also be submitted for approval. Cilantro Taco Grill has 60 days to review the proposed campaign.
Cilantro Taco Grill reserves the right to either create a grand opening advertising campaign for the franchisee to conduct or collect a nonrefundable fee of $15,000 and conduct the campaign on the franchisee's behalf. The grand opening advertising campaign must include elements that Cilantro Taco Grill requires, including food and merchandise giveaways. Cilantro Taco Grill also reserves the right to collect some or all of the franchisee's grand opening funds and implement grand opening campaign activities on the franchisee's behalf.
In addition to the grand opening advertising, franchisees are also required to spend at least 1% of monthly Gross Revenue on advertising for the Franchised Business. All advertising and promotion must be conducted in a professional manner and conform to Cilantro Taco Grill's standards and requirements.