What is the stated purpose for which CTG Franchise, LLC (Cilantro Taco Grill) was formed?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
at beginning of year | 100,000 | - | | Cash and cash equivalents at end of year | 98,177 $ | 100,000 | | Total cash and cash equivalents | $ 98,177 $ | 100,000 |
CTG Franchise, LLC NOTES TO FINANCIAL STATEMENTS December 31, 2023 and 2022
1. Organization
CTG Franchise, LLC (the "Company") is an Illinois Limited Liability Company. The Company was formed in December 2022 for the purpose of franchising it's restaurants nationally in the United States.
The Company is set
Source: Item 23 — RECEIPT (FDD pages 52–208)
What This Means (2024 FDD)
According to the 2024 FDD, CTG Franchise, LLC (Cilantro Taco Grill) was formed in December 2022 as an Illinois Limited Liability Company. The stated purpose of the company is to franchise its restaurants nationally throughout the United States. This indicates that Cilantro Taco Grill's primary business model is to expand its brand and presence by offering franchise opportunities to individuals or entities interested in operating a Cilantro Taco Grill restaurant.
As a flow-through entity, Cilantro Taco Grill does not have tax provisions at the company level; instead, any tax liabilities are passed on to the individual owners. In 2023, total contributions amounted to $34,717, while in 2022, they were $100,000. The document indicates that there were no distributions in either year. This financial structure and the absence of distributions may have implications for how profits and losses are handled and for the overall financial strategy of the franchise system.
For a prospective franchisee, understanding the franchisor's organizational structure and financial practices is crucial. Knowing that Cilantro Taco Grill was specifically created for franchising and operates as a flow-through entity provides insight into the franchisor's business focus and financial management. Additionally, the contributions and lack of distributions in the stated years may be relevant when evaluating the financial stability and investment potential of the franchise opportunity.