What is the required action for a Cilantro Taco Grill franchisee regarding participation in advertising, promotional, or marketing programs?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
ion of Gross Sales.
2Upon our request, you must furnish us with a monthly report and documentation of local advertising expenditures during the previous calendar month. You may not use social media platforms, such as Facebook, Twitter, Instagram, TikTok, LinkedIn, YouTube, blogs and other networking and sharing websites, unless you first receive our written approval to do so and such use is in strict accordance with our requirements. In addition to your monthly Local Advertising requirement, you agree to participate in any other advertising, promotional or marketing programs to advertise the Franchised Businesses. The cost for participation in promotional programs will vary depending on the length and type of promotion, but shall not exceed $600 per each day of the promotional program. The costs will include labor, marketing materials, furniture, equipment and/or food.
3Worldwide Creative Marketing Fee payments are due at the same time and in the same manner as Royalty Fees. You are required to set up authorization at your bank to allow the Worldwide Creative Marketing Fund to electronically transfer funds from your bank account to the Worldwide Creative Marketing Fund's bank account. Interest and late fees will apply to any late payments or electronic funds transfer requests denied due to insufficient funds. If you do not report any sales in a week then the Worldwide Creative Marketing Fund will collect 120% of the last Worldwide Creative Marketing Fee collected and settle the balance the next week in whi
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2024 FDD)
According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, franchisees are required to participate in advertising, promotional, or marketing programs to advertise their franchised businesses. The cost for participation in these promotional programs will vary based on the length and type of promotion. However, the cost will not exceed $600 per day of the promotional program. These costs may include labor, marketing materials, furniture, equipment, and/or food.
In addition to participating in promotional programs, Cilantro Taco Grill franchisees must furnish the franchisor with a monthly report and documentation of local advertising expenditures from the previous month upon request. Franchisees are also restricted from using social media platforms such as Facebook, Twitter, Instagram, TikTok, LinkedIn, YouTube, and blogs without prior written approval from Cilantro Taco Grill, and any approved use must strictly adhere to their requirements.
Cilantro Taco Grill also requires franchisees to set up authorization at their bank to allow the Worldwide Creative Marketing Fund to electronically transfer funds from the franchisee's bank account to the Worldwide Creative Marketing Fund's bank account. Interest and late fees will apply to any late payments or electronic funds transfer requests denied due to insufficient funds. If a franchisee does not report any sales in a week, then the Worldwide Creative Marketing Fund will collect 120% of the last Worldwide Creative Marketing Fee collected and settle the balance the next week in which the franchisee reports sales.