Can trade areas for Cilantro Taco Grill franchises overlap?

According to the 2024 Cilantro Taco Grill FDD, franchise territories are designed to avoid overlap. For single-unit franchisees, the agreement specifies that the assigned territory cannot overlap or interfere with existing trade areas, designated territories, or development areas granted to other franchisees or multi-unit operators. Cilantro Taco Grill also reserves the right to provide a two-mile buffer between territories to further prevent any overlapping of areas. Additionally, Cilantro Taco Grill retains the right to adjust the boundaries of a territory if it believes there is a conflict with another territory.

For multi-unit operators, the FDD states that trade areas cannot overlap or interfere with existing trade areas, designated territories, or development areas. Cilantro Taco Grill reserves the right to provide a two-mile buffer between these areas. Furthermore, Cilantro Taco Grill can adjust or reassign the development area, including trade areas, to best serve the multi-unit operator's interests or resolve conflicts with existing areas. In cases of conflict, Cilantro Taco Grill can move the trade area to an unoccupied area or refund a pro-rata portion of the development fee for outlets affected by the conflict.

These provisions aim to protect each Cilantro Taco Grill franchisee's business by ensuring they have a defined and exclusive territory to operate within, free from direct competition from other franchisees. The buffer zones and adjustment rights provide additional safeguards against potential conflicts and ensure that each franchisee has a fair opportunity to succeed in their designated area. Prospective franchisees should confirm the specific boundaries of their territory and any potential adjustments that may occur during the term of their agreement.