Who has the right, title, and interest in and to any and all Allowances related to Cilantro Taco Grill?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
We have the right to collect and retain any and all allowances, rebates, credits, incentives, or benefits (collectively, "Allowances") offered by manufacturers, suppliers, and distributors to you, to us, or to our affiliate, based upon your purchases of products (including proprietary products) and services from manufacturers, suppliers, and distributors. We or our affiliates will have all right, title, and interest in and to any and all of these Allowances. We or our affiliate may collect and retain any or all of these Allowances without restriction (unless otherwise instructed by the manufacturer, supplier, or distributor). If we contribute any Allowances from approved suppliers to the Worldwide Creative Marketing Fund, it will not reduce or eliminate your obligation to pay the Worldwide Creative Marketing Fund contribution. During the fiscal year ended December 31, 2023, we and our affiliate did not earn any Allowances because we did not have any franchisees.
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 or its affiliates possess all rights, titles, and interests in any and all Allowances. These Allowances include rebates, credits, incentives, or benefits offered by manufacturers, suppliers, and distributors based on a franchisee's purchases of products and services.
This means that Cilantro Taco Grill, not the franchisee, benefits directly from any price reductions, rebates, or other incentives provided by suppliers due to the franchisee's purchases. Cilantro Taco Grill or its affiliates can collect and retain these Allowances without restriction, unless the manufacturer, supplier, or distributor specifies otherwise.
The FDD clarifies that if Cilantro Taco Grill contributes any Allowances from approved suppliers to the Worldwide Creative Marketing Fund, this contribution does not reduce or eliminate the franchisee's obligation to pay into that fund. For the fiscal year ended December 31, 2023, Cilantro Taco Grill and its affiliates did not earn any Allowances because they did not have any franchisees at that time.