What is the royalty fee that a Cilantro Taco Grill franchisee must pay?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee is required to contribute a percentage of the Gross Revenue generated weekly by Franchisee's Franchised Business to the Worldwide Creative Marketing Fund, as determined by Franchisor ("Worldwide Creative Marketing Fee"). Franchisor reserves the right, in Franchisor's sole discretion and at any time and from time to time, to increase the amount of the Worldwide Creative Marketing Fee to any amount not to exceed two percent (2%) of Franchisee's Gross Revenue. Payments will be made in the same manner and time as the Royalty Fees.
Source: Item 23 — RECEIPT (FDD pages 52–208)
What This Means (2024 FDD)
According to the 2024 Cilantro Taco Grill Franchise Disclosure Document, franchisees are required to pay a royalty fee, referred to as the "Royalty Fee," which is a percentage of the Gross Revenue generated weekly by the Franchised Business. The specific percentage for this Royalty Fee is not detailed in the provided excerpts.
In addition to the Royalty Fee, Cilantro Taco Grill franchisees must contribute to the Worldwide Creative Marketing Fund. Franchisees are required to contribute a percentage of their weekly Gross Revenue to this fund, known as the "Worldwide Creative Marketing Fee." The franchisor determines the percentage, and it can be increased up to a maximum of two percent (2%) of the franchisee's Gross Revenue. These payments are made in the same manner and at the same time as the Royalty Fees.
It is important for prospective Cilantro Taco Grill franchisees to clarify the exact percentage of the Royalty Fee with the franchisor, as this will significantly impact their ongoing operational costs and profitability. Understanding both the Royalty Fee and the Worldwide Creative Marketing Fee is crucial for assessing the financial viability of the franchise.