Until construction of the new site is complete, what must a Cilantro Taco Grill franchisee do?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
ement, unless you are in default of your obligations to us.
You may not change the location of your Franchised Business, without our written consent, which we may withhold in our sole discretion. If we give our consent, we will charge you a relocation fee equal to $1,500 in addition to our actual costs and expenses. The conditions under which we may allow you to relocate include the following: loss of your premises not due to your default, demographics of the surrounding area, proximity to other Cilantro Taco Grill outlets, lease requirements, traffic patterns, vehicular and pedestrian access, proximity to major roads, available parking, and overall suitability. If you wish to relocate, you must identify a new location for the Franchised Business that meets our approval, in accordance with our then-current site selection procedures, and build out the approved location within 120 days. If you do not identify a site and complete the build-out within this time period, we may terminate the Franchise Agreement. You must continue to operate at your origi
Source: Item 12 — TERRITORY (FDD pages 33–35)
What This Means (2024 FDD)
According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, if a franchisee chooses to relocate their business, they must continue to operate at their original premises until construction of the new site is complete. This means that even while preparing a new location, the franchisee is obligated to maintain operations at the existing site.
This requirement ensures that Cilantro Taco Grill maintains a continuous presence and service to its customers. It prevents any disruption in service that might occur if the original location were to close before the new one is ready. For a franchisee, this means managing the logistical and financial challenges of running one location while simultaneously setting up another.
The franchisee must factor in the costs of staffing, inventory, and other operational expenses for the original location during the construction phase of the new site. This could potentially strain resources and require careful planning to avoid any negative impact on service quality or financial stability. Franchisees should discuss with Cilantro Taco Grill what support or flexibility is available during this transition period to help mitigate these challenges.
Furthermore, the FDD states that if a franchisee wishes to relocate, they must identify a new location that meets Cilantro Taco Grill's approval, in accordance with their then-current site selection procedures, and build out the approved location within 120 days. Failure to identify a site and complete the build-out within this time period may result in the termination of the Franchise Agreement.