What are the Royalty Fees that Cilantro Taco Grill franchisees pay that affiliate-owned outlets do not?

According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, affiliate-owned outlets do not pay Royalty Fees or Worldwide Creative Marketing Fees, which are obligations for franchisees. Additionally, affiliate-owned outlets are not required to spend a minimum amount on local advertising, nor are they subject to territorial advertising or service restrictions, unlike franchisees.

This difference in financial obligations is significant for prospective franchisees. The absence of Royalty Fees and marketing expenses for affiliate-owned outlets means that the financial performance representation provided may not fully reflect the costs a franchisee will incur. Franchisees need to factor in these additional expenses when evaluating the potential profitability of a Cilantro Taco Grill franchise.

Prospective franchisees should carefully consider the implications of these fees and advertising requirements. Understanding the specific amounts and terms associated with Royalty Fees, Worldwide Creative Marketing Fees, and local advertising expenditures is crucial for developing an accurate financial forecast. It is also important to understand what the territorial advertising or service restrictions are and how they may impact a franchisee's ability to market and operate their Cilantro Taco Grill location.