Under what circumstances will a Cilantro Taco Grill franchisee not receive a Territory?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
Agreement and no other changes shall be made to the form of addendum itself.
3. TERRITORY.
- 3.1 Territory. This Agreement grants Franchisee the right to operate the Franchised Business at a single location and from within a Territory. Upon the determination of an Accepted Location, you will be assigned a Territory. Subject to Section 3.2 below, Franchisor agrees that during the term of this Agreement, Franchisor will not operate, and will not authorize any other franchisees to operate, a Cilantro Taco Grill outlet in the Territory using the same Marks as licensed to Franchisee in this Agreement so long as Franchisee is not in default under this Agreement or this Agreement has not been terminated.
Source: Item 23 — RECEIPT (FDD pages 52–208)
What This Means (2024 FDD)
According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, a franchisee is granted the right to operate their franchised business at a single location within a designated territory. The assignment of this territory is contingent upon the determination of an "Accepted Location." This implies that until a specific location is approved by Cilantro Taco Grill, a franchisee will not be assigned a territory.
Cilantro Taco Grill retains the discretion to withhold or deny approval of a franchisee's proposed location. This decision rests solely with the franchisor. Furthermore, the franchise agreement stipulates that the specific street address of the approved location and the territory will be officially incorporated into the agreement through an addendum. This addendum includes a revised attachment A, which must be signed by both parties, solidifying the agreement on the territory.
This process highlights the importance of securing an "Accepted Location" as a prerequisite for obtaining a territory. Without this approved location, the franchisee cannot proceed with operating their Cilantro Taco Grill business within a protected area. Prospective franchisees should, therefore, prioritize site selection and approval to ensure they can benefit from the territorial rights granted by the franchise agreement.