What is the significance of signing the receipt attached to the Cilantro Taco Grill Disclosure Document?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
The undersigned does hereby acknowledge receipt of this addendum.
CTG Franchise LLC Ву: Ву: Name: Cuahutémoc Morfin Title: Owner PRINCIPAL:
EXHIBIT H FRANCHISEE ACKNOWLEDGEMENT STATEMENT
As you know, CTG Franchise LLC (the "Franchisor") and you are preparing to enter into a franchise agreement (the "Franchise Agreement") for the establishment and operation of a Cilantro Taco Grill franchised business (the "Franchised Business"). The purpose of this Questionnaire is to determine whether any statements or promises were made to you by employees or authorized representatives of the Franchisor, or by employees or authorized representatives of Fransmart, LLC ("Fransmart") that have not been authorized, or that were not disclosed in the Disclosure Document or that may be untrue, inaccurate or misleading. The Franchisor, through the use of this document, desires to ascertain (a) that the undersigned, individually and as a representative of any legal entity established to acquire the franchise rights, fully understands and comprehends that the purchase of a franchise is a business decision, complete with its associated risks, and (b) that you are not relying upon any oral statement, representations, promises or assurances during the negotiations for the purchase of the franchise which have not been authorized by Franchisor.
In the event that you are intending to purchase an existing Franchised Business from an existing franchisee, you may have received information from the transferring franchisee, who is not an employee or representative of ours. The questions below do not apply to any communications that you had with the transferring franchisee. Please review each of the following questions and statements carefully and provide honest and complete responses to each.
NOTICE FOR PROSPECTIVE FRANCHISEES WHO RESIDE IN, OR WHO INTEND TO OPERATE THE FRANCHISED BUSINESS IN, ANY OF THE FOLLOWING STATES: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI (EACH A REGULATED STATE):
FOR PROSPECTIVE FRANCHISEES THAT RESIDE IN OR ARE SEEKING TO OPERATE THE FRANCHISED BUSINESS IN ANY REGULATED STATE, SUCH PROSPECTIVE FRANCHISEE SHOULD NOT COMPLETE THIS QUESTIONNAIRE OR TO RESPOND TO ANY OF THE QUESTIONS CONTAINED IN THIS QUESTIONNAIRE.
| 1. | I am not seeking to enter into a Franchise Agreement in connection with a purchase or transfer of | |
|---|---|---|
| an exis | sting Fran | chised Business from an existing Franchisee. |
| Initials | ||
| 2. | I had my first face-to-face meeting with a Franchisor representative on | |
| (mm/c | ld/yyyy). |
Source: Item 23 — RECEIPT (FDD pages 52–208)
What This Means (2024 FDD)
According to the 2024 Cilantro Taco Grill Franchise Disclosure Document, signing the receipt attached to the disclosure document serves as an acknowledgement that the franchisee understands the risks associated with purchasing a franchise and that they are not relying on unauthorized statements or promises made during negotiations. Specifically, the franchisee acknowledges that the success or failure of the franchise is subject to various business risks, including their own skills, competition, interest rates, and economic conditions. They also confirm that their decision to invest is based on their own independent investigation and the advice of their professional team.
Furthermore, the franchisee acknowledges that they have not received any assurances from Cilantro Taco Grill or its agents regarding projected sales, profits, or earnings, except as contained in the Disclosure Document. This acknowledgement is crucial for Cilantro Taco Grill, as it protects them from potential claims that the franchisee was misled by unauthorized representations. The document emphasizes that purchasing a franchise is a business decision with inherent risks, and the franchisee is willingly undertaking those risks.
This acknowledgement also confirms that the franchisee has relied solely on their own investigation and team of professionals when making the decision to purchase the Cilantro Taco Grill franchise. By signing this statement, the franchisee agrees that neither Cilantro Taco Grill nor Fransmart has provided any information not already included in the Disclosure Document. This reinforces the importance of the Disclosure Document as the primary source of information for prospective franchisees and limits the franchisor's liability regarding any verbal or undocumented claims.
In the broader context of franchise agreements, such acknowledgements are common practice to ensure that franchisees are fully aware of the risks and have conducted their due diligence. It also protects the franchisor from potential legal disputes arising from misunderstandings or misinterpretations of information provided during the franchise sales process. However, the FDD also states that no statement signed by a franchisee can waive claims under franchise law or disclaim reliance on statements made by the franchisor.