Who resolves issues affecting the regional advertising cooperative's establishment or effective functioning if the members of a Cilantro Taco Grill regional advertising cooperative reach an impasse?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
- 13.4.8 if an impasse occurs because of a regional advertising cooperative members' inability or failure, within forty-five (45) days, to resolve any issue affecting the regional advertising cooperative's establishment or effective functioning, upon request of any regional advertising cooperative member, that issue must be submitted to Franchisor for consideration, and Franchisor's resolution of such issue is final and binding on all regional advertising cooperative members.
Source: Item 23 — RECEIPT (FDD pages 52–208)
What This Means (2024 FDD)
According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, if members of a regional advertising cooperative are unable to resolve an issue affecting the cooperative's establishment or effective functioning within 45 days, the issue will be submitted to Cilantro Taco Grill for consideration upon request of any member. Cilantro Taco Grill's resolution of the issue is final and binding on all members of the regional advertising cooperative.
This means that if franchisees within a regional advertising cooperative cannot agree on important matters related to the cooperative's operations, a single franchisee can escalate the issue to Cilantro Taco Grill. Cilantro Taco Grill then has the authority to make a final decision that all members must abide by.
This clause ensures that disputes within the advertising cooperative do not paralyze its activities. However, it also means that franchisees may be subject to decisions made by Cilantro Taco Grill that they do not agree with, highlighting the importance of understanding the franchisor's approach to advertising and conflict resolution.