What specific agreement must be included in the lease for a Cilantro Taco Grill franchise?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
You are responsible for negotiating a lease with the owner of a site we approve.
Any lease must include our Conditional Assignment of Lease Agreement, a copy of which is attached to the Franchise Agreement as Attachment 5 (Franchise Agreement, Sections 8.1.2, 8.1.3 10.1).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 26–33)
What This Means (2024 FDD)
According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, any lease negotiated by the franchisee for an approved site must include the brand's Conditional Assignment of Lease Agreement. A copy of this agreement is included as Attachment 5 to the Franchise Agreement.
This requirement ensures that Cilantro Taco Grill has the option to take over the lease under certain conditions, which protects the business's location and continuity. This is a fairly standard practice in franchising, as it gives the franchisor some control over the premises, especially if the franchisee defaults or the agreement is terminated.
Prospective franchisees should carefully review Attachment 5, the Conditional Assignment of Lease Agreement, to understand the circumstances under which Cilantro Taco Grill can assume the lease. Understanding these conditions is crucial before signing both the franchise agreement and the lease for the chosen location.