Can Cilantro Taco Grill revoke approval of an item or supplier?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
cts to our franchisees.
We approve suppliers after careful review of the quality of the products they provide to us and you. If you would like us to consider another item or supplier, you must make such request in writing to us and have the supplier give us samples of its product or service and such other information that we may require. If the item and/or supplier meet our specifications, as we determine in our sole discretion, we will approve it as an additional item or supplier. We will make a good-faith effort to notify you whether we approve or disapprove of the proposed item or supplier within 30 days after we receive all required information to evaluate the product or service. If we do not approve any request within 30 days, it is deemed unapproved. We reserve the right to revoke approval of any item or supplier that does not continue to meet our then-current standards
upon written notice to you. Our criteria for approving items and suppliers are not available to you. If you request that we approve a proposed item or supplier, we reserve the right to charge an Evaluation Fee equal to our actual costs of inspection and testing.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 22–24)
What This Means (2024 FDD)
According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, Cilantro Taco Grill retains the right to revoke approval of any item or supplier. This can occur if the item or supplier fails to continuously meet the brand's standards. Cilantro Taco Grill will provide written notice to the franchisee if such a revocation occurs.
This stipulation is important for prospective franchisees because it means that even if a supplier or product is initially approved, that approval is not guaranteed to be permanent. Cilantro Taco Grill can change its standards, and suppliers must continue to meet those evolving standards to maintain their approved status. This could potentially lead to a franchisee needing to switch suppliers, which may cause disruptions or increased costs.
While the FDD states that Cilantro Taco Grill's criteria for approving items and suppliers are not available to franchisees, it does state that if a franchisee requests that Cilantro Taco Grill approve a proposed item or supplier, Cilantro Taco Grill reserves the right to charge an Evaluation Fee equal to their actual costs of inspection and testing. Franchisees should be aware of this potential cost when suggesting new suppliers or items. This policy is fairly standard in franchising, as franchisors need to maintain quality control and consistency across all locations.