Under what conditions is the delayed opening fee for a Cilantro Taco Grill franchise incurred?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
| YOUR ESTIMATED INITIAL INVESTMENT | ||||
|---|---|---|---|---|
| (Single Unit) | ||||
| Type of Expenditure | Amount | Method of Payment | To Whom Payment is Made | |
| Initial Franchise Fee1 | $35,000 | Lump sum payment in cash or available funds | Upon signing the Franchise Agreement. | Us |
| Delayed Opening Fee | $0 - $9,000 | As required by Us | As incurred | Us |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 18–21)
What This Means (2024 FDD)
According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, a delayed opening fee, ranging from $0 to $9,000, may be incurred. This fee is required by Cilantro Taco Grill and is due as incurred. This means that the fee is not a fixed amount paid upfront but rather depends on specific circumstances determined by Cilantro Taco Grill during the setup phase of the franchise.
For a prospective franchisee, this implies that the actual amount of the delayed opening fee is uncertain and can vary significantly. It is essential to understand what specific situations or failures to meet deadlines could trigger this fee. Franchisees should seek clarity from Cilantro Taco Grill regarding the specific conditions under which this fee is applied to avoid unexpected costs during the opening phase.
Understanding the potential triggers for this fee is crucial for budgeting and managing the initial investment. Franchisees should proactively communicate with Cilantro Taco Grill to ensure they meet all requirements and deadlines, thereby minimizing the risk of incurring this fee. It is also advisable to document all communications and agreements related to the opening process to have a clear record in case of disputes.