Is Cilantro Taco Grill responsible for owning or leasing a site to the franchisee?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
We will not own and/or lease a site to you.
You are responsible for negotiating a lease with the owner of a site we approve.
Any lease must include our Conditional Assignment of Lease Agreement, a copy of which is attached to the Franchise Agreement as Attachment 5 (Franchise Agreement, Sections 8.1.2, 8.1.3 10.1).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 26–33)
What This Means (2024 FDD)
According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, the franchisee is responsible for securing their own location. Cilantro Taco Grill will provide site selection guidelines and must approve the franchisee's chosen location.
The franchisee must submit a written request for approval within 60 days of signing the Franchise Agreement, including information about the proposed site. Cilantro Taco Grill will then respond within 30 days, either accepting or rejecting the location based on factors such as general location, distance from other franchises, proximity to roads and residential areas, traffic patterns, condition of the premises, tenant mix, and area demographics. If a suitable site is not identified within 60 days of signing the Franchise Agreement, Cilantro Taco Grill reserves the right to terminate the agreement.
The franchisee is responsible for negotiating the lease with the property owner, and the lease must include Cilantro Taco Grill's Conditional Assignment of Lease Agreement. This arrangement is typical in franchising, where the franchisee bears the responsibility for real estate and its associated costs, while the franchisor provides guidance and approval to ensure brand consistency and suitability.