Are there any circumstances where the Cilantro Taco Grill Franchise Agreement can be modified by attachments?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
This grant applies only to a single location within a territory that is designated in Attachment 2 attached hereto and incorporated herein (the "Territory"). Franchisee and the Principals have represented to Franchisor that they have entered into this Agreement with the intention of complying fully with the obligations to construct a Cilantro Taco Grill restaurant hereunder and not for the purpose of reselling the rights to develop the restaurant hereunder. Franchisee and the Principals understand and acknowledge that Franchisor has granted such rights in reliance on the business skill, financial capacity, personal character of, and expectations of performance hereunder, by Franchisee and the Principals and that this Agreement and the rights and obligations hereunder may not be transferred until after the Cilantro Taco Grill restaurant is open for business to the public in accordance with Section 8.3, and then only in accordance with Article 16 hereof. If the parties mutually agree to certain negotiated changes during Initial Term or Renewal Term, then Franchisee acknowledges and agrees to sign an addendum in the form attached hereto as Attachment 9 or any form we may require in the future, and that the revisions contained in this form are added terms to this Agreement and no other changes shall be made to the form of addendum itself.
Source: Item 22 — CONTRACTS (FDD pages 51–52)
What This Means (2024 FDD)
According to the 2024 Cilantro Taco Grill Franchise Disclosure Document, the Franchise Agreement can be modified through attachments under specific circumstances. Attachment 2 designates the territory granted to the franchisee. Additionally, if both Cilantro Taco Grill and the franchisee agree to certain negotiated changes during the Initial Term or Renewal Term, the franchisee must sign an addendum in the form attached as Attachment 9, or any form Cilantro Taco Grill may require in the future. The revisions contained in this form become added terms to the Franchise Agreement, and no other changes can be made to the addendum itself.
This indicates that the standard Franchise Agreement can be altered to reflect specific terms agreed upon between Cilantro Taco Grill and the franchisee. These modifications are formalized through specific attachments or addenda to the original agreement. Attachment 9 is a pre-defined form for addenda, suggesting a structured process for making changes.
For a prospective franchisee, this means that while the core Franchise Agreement is standardized, there is room for negotiation and customization. However, any changes must be documented through official addenda provided by Cilantro Taco Grill. Franchisees should carefully review any proposed addenda and seek legal counsel to fully understand the implications of these modifications to their rights and obligations under the Franchise Agreement.