Cilantro Taco Grill
Cilantro Taco Grill offers authentic Mexican cuisine in a fast-casual setting, including tacos, burritos, salads, and tortas. Known for its flavorful dishes, this Illinois-based franchise operates across the U.S., fitting into the casual dining sector of the food service industry.
Cilantro Taco Grill franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin the operation of a Cilantro Taco Grill franchised business is $273,000 to $730,800. This includes $35,000 to $50,000 that must be paid to the franchisor or its affiliate(s) [p.1].
What is the initial franchise fee?
The initial franchise fee is $35,000 [p.11, p.63]. This payment is fully earned by the company at the time the Franchise Agreement is signed and is not refundable under any circumstances [p.11, p.63].
What are the ongoing royalty and advertising fees?
The franchisee is required to pay a weekly Royalty Fee equal to 6% of Gross Revenue [p.63]. Additionally, the franchisee must spend at least 1% of their monthly Gross Revenue on Local Advertising in the territory [p.84]. Franchisor may also require the allocation of up to half of the Local Advertising expenditure to an advertising cooperative and reserves the right to collect these expenditures or implement the advertising themselves [p.84].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
According to the FDD, a franchisor can refuse to permit the transfer of ownership of a franchise except for good cause [p.6]. Good cause includes but is not limited to unspecified reasons, which may include the franchisor's right of first refusal to purchase the franchise [p.6].
On what grounds can the franchisor terminate the agreement?
According to [p.195], a franchisor cannot cancel a franchise without reasonable cause, as defined by Virginia law or the Virginia Retail Franchising Act. Additionally, [p.6] specifies that good cause for termination includes failure to comply with lawful provisions of the franchise agreement and not curing such failures after notice and a reasonable opportunity to cure, which cannot exceed 30 days.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. According to [p.33], you may face competition from other franchisees, outlets owned by the company, or other channels of distribution or competitive brands controlled by them within your designated area. [p.160] also indicates that any disputes would be subject to the laws of Illinois and jurisdiction would be in Illinois courts.
What training and ongoing support does the franchisor provide?
The franchisor provides initial training through its HQ Initial Training Program, which must be completed no later than 60 days before opening. This includes training for up to three individuals at the franchisor's headquarters or a specified location, with additional trainees requiring payment of per-person fees. The franchisor also offers pre-opening assistance and training for up to ten days around the opening date, though this can be extended if available, with associated costs. Ongoing support is provided through on-site remedial training upon request, subject to personnel availability, at a fee that includes travel, lodging, and meals. [p.75, p.68]
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor shares financial performance information for its owned outlets that have been open for at least 12 months. Specifically, CTG Franchise LLC includes financial representations for 13 Cilantro Taco Grills outlets in their disclosure document for the fiscal year ending December 31, 2023 [p.48]. However, other than this information, the franchisor does not make any financial performance or earnings information available to prospective franchisees unless requested and provided upon reasonable request [p.49].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only the specific types of food and beverages designated by the franchisor and can only use suppliers and vendors approved by them. You may not sell products outside your Franchised Business location except for promotional events with prior approval or in areas not occupied by a Cilantro Taco Grill Restaurant. Additionally, you must buy or lease items from the franchisor or a limited group of suppliers designated by them, which may be more expensive than other options [p.4].