Are the royalty fees the same for each additional Cilantro Taco Grill franchise agreement?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
For each subsequent Cilantro Taco Grill outlet to be established hereunder, Multi-Unit Operator shall execute and deliver to Franchisor Franchisor's then-current form of Franchise Agreement, which shall be presented to Multi-Unit Operator together with Franchisor's then-current Franchise Disclosure Document.
The then-current form of Franchise Agreement may differ from the current form of Franchise Agreement; provided however, the initial franchise fee for each additional outlet shall be the applicable amount set forth in in Section 4.1 hereof, and the royalty fee and local advertising will remain the same as the first franchise agreement.
Source: Item 23 — RECEIPT (FDD pages 52–208)
What This Means (2024 FDD)
According to the 2024 Cilantro Taco Grill Franchise Disclosure Document, for each subsequent Cilantro Taco Grill outlet to be established under a multi-unit operator agreement, the royalty fee will remain the same as the first franchise agreement. This applies when a multi-unit operator exercises their development rights by entering into a separate Franchise Agreement with Cilantro Taco Grill for each outlet.
Specifically, the then-current form of the Franchise Agreement may differ from the current form; however, the initial franchise fee for each additional outlet will be the applicable amount set forth in Section 4.1, and the royalty fee and local advertising will remain the same as the first franchise agreement.
This indicates that while other terms in the Franchise Agreement might change over time, Cilantro Taco Grill is committing to keep the royalty fee consistent across all franchise agreements executed under the development schedule. This provides some financial predictability for the multi-unit operator as they expand their Cilantro Taco Grill locations.