From the filings

HQ-led decisions

Cilantro Taco Grill

Quick service restaurant

Software purchasing at Cilantro Taco Grill is controlled at the HQ level by Chief Technology Officer Hernan Valencia Morfin, as disclosed in the 2024 FDD. The brand operates 15 company-owned quick-service restaurants and does not currently mandate specific technology systems in its franchise disclosure document. With an average unit volume of $1,581,794.87, the addressable market for vendors is limited to these 15 corporate locations unless franchising expands.

For software vendors selling into US franchise brands.

FDD key facts2024

FDD year	2024
Franchise term	10 years
AUV (Item 19)	$1.58M
Royalty	6% component; full terms unconfirmed
Ad fund	2%
Addressable units	15
Decision level	HQ
Tech landscape	No mandated tech stack
Investment range	$276K–$779K
Procurement	Franchisor controlled
Tech fee	—
Company-owned units	15

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Read the full FDD

Live signals

Total units

0 franchised

Franchised outlet growth

—

Item 20, last two year-ends

AUV

$1.58M

Item 19

Royalty

6% component; full terms unconfirmed

percentage component

Ad fund

percentage component

Initial fee

$35K

per unit

Investment range

$276K–$779K

all-in, Item 7

Procurement

Franchisor controlled

from the filing

Non-compete

2 years

from the filing

Item 19

Claims

from the filing

Ordinary royalty terms

6% component; full terms unconfirmed

Complete royalty terms are not confirmed for the selected filing.

Recorded percentage components

These are recorded percentage components. Each has its own base and conditions; the chart does not state the total payment or confirm ad-fund completeness.

1recorded components (FY2024)

15% reference

Ad fund 2%

Mandated & recommended tech

The systems vendors compete with

Systems named in Item 11 of this filing. None is recorded as mandated here, which is not the same as the filing mandating nothing. Read Item 11 before treating the category as open.

FacebookMeta

MarketingItem 6

2 Upon our request, you must furnish us with a monthly report and documentation of local advertising expenditures during the previous calendar month. You may not use social media platforms, such as Facebook, Twitter, Instagram, TikTok, LinkedIn, YouTube, blogs and other networking and sharing websites, unless you first receive our written approval to do so and such use is in strict accordance with our requirements. In addition to your monthly Local Advertising requirement, you agree to participate in any other advertising, promotional or marketing programs to advertise the Franchised Businesses. The cost for participation in promotional programs will vary depending on the length and type of promotion, but shall not exceed $600 per

InstagramMeta

MarketingItem 6

LinkedInLinkedIn

MarketingItem 6

TikTokTikTok

MarketingItem 6

TwitterX

MarketingItem 11

We do not provide for placement of local advertising on your behalf, and we have no obligation to spend any amount on advertising in your area or territory. You are responsible for local advertising placement. If feasible, you may do cooperative advertising with other Cilantro Taco Grill franchisees in your area, with our prior written approval. You may not maintain any business profile on Facebook, Twitter, Instagram, LinkedIn, YouTube or any other social media and/or networking site without our prior written approval. Promotional Programs. In addition to your monthly Local Advertising requirement, you agree to participate in any other advertising, promotional or marketing programs to advertise the Franchised Businesses. The cost for participation in promotional programs will vary depending on the length and type of promotion, but shall not exceed $600 per each day of the promotional program. The costs will include labor, marketing materials, furniture, equipment and/or food.

YouTubeGoogle

MarketingItem 6

Franchisor behaviours

What the franchisor requires

27 requirements the franchisor states in this filing, each in its own words; 3 explicit no's; 4 questions the text does not settle, which is not a no.

Accounting

Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?

Yes

Item 11

The POS System allows us to independently and remotely access all of your sales data, including your Gross Revenue, through the Internet.

Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?

Yes

Franchise agreement

Within fifteen (15) days after the close of each month and within ninety (90) days after the close of each fiscal year, Franchisee will furnish Franchisor a full and complete written statement of income and expense and a profit and loss statement for the operation of the Franchised Business during said period…

How the franchisor buys

Does the franchisor reserve the right to change designated suppliers or systems at any time?

Yes

Franchise agreement

Franchisee shall make any and all upgrades to equipment, including but not limited to, design, display and storage equipment, POS Systems, and computer hardware, software and peripherals, and any technology used in conjunction therewith, as Franchisor requires in its sole and absolute discretion.

How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?

Item 8

During the fiscal year ended December 31, 2023, neither we nor our affiliate earned any revenue from the sale of products to our franchisees.

Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?

Yes

Item 8

Currently we have a relationship with an approved provider of HR and online payroll services, where we will receive a rebate and you will receive a discount if you use this provider.

Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?

Item 8

approximately 30 - 40% of your costs for ongoing operation.

Does the franchisor charge a fee to evaluate a proposed supplier?

Yes

Item 8

If you request that we approve a proposed item or supplier, we reserve the right to charge an Evaluation Fee equal to our actual costs of inspection and testing.

Can a franchisee propose a new supplier for the franchisor's approval?

Yes

Item 8

If you would like us to consider another item or supplier, you must make such request in writing to us and have the supplier give us samples of its product or service and such other information that we may require.

Communications

Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?

Yes

Franchise agreement

Upon the expiration or termination of Cilantro Taco Grill FA 2024 19 this Agreement, Franchisor may exercise its authority, pursuant to such documents, to obtain any and all of Franchisee’s rights to the telephone numbers of the Franchised Business and all related telephone directory listings and other business…

Data and IT

Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?

Yes

Franchise agreement

Franchisee shall have and maintain adequate software, hardware and peripherals in order to access the Internet at the speed required by Franchisor from time to time.

Franchise management

Must the franchisee participate in a customer-satisfaction or net-promoter survey program?

Yes

Item 6

Evaluations (“Mystery You are required to participate in Shops”) the mystery shopper program.

Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?

Yes

Item 11

We will conduct inspections of your Franchised Business, at the frequency and duration that we deem advisable.

Can the franchisor change the operations manual and brand standards unilaterally?

Yes

Item 17

Modification of the Sections 9.4, 14.6, No oral modifications generally, but we agreement 19.1.4 and 21.4 may change the Operations Manual and System standards at any time.

Must the franchisor approve the franchisee's site or location before opening?

Yes

Franchise agreement

No site may be used for the location of the Franchised Business unless it is accepted in writing by Franchisor.

Marketing

Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?

Yes

Franchise agreement

Franchisee may not maintain any business profile on Facebook, Twitter, Instagram, TikTok, LinkedIn, YouTube, or any other social media and/or networking site without Franchisor’s prior written approval

Is a minimum grand opening advertising spend required?

Yes

Franchise agreement

Franchisee shall spend Fifteen Thousand Dollars ($15,000.00) on Local Advertising and promotional activities in the Territory thirty (30) days prior to and within the first thirty (30) days after the opening of the Franchised Business to promote the opening of the Franchised Business (“Grand Opening Advertising…

Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?

Yes

Item 11

Thereafter, you are required to spend at least 1% of monthly Gross Revenue on advertising for the Franchised Business in your territory.

Must the franchisee participate in a customer loyalty or rewards program?

Yes

Franchise agreement

12.1.10 Accept and honor all loyalty cards, promotional coupons, or other System-wide offers, on a uniform basis, as accepted by other franchisees in the System.

Operations

Must the franchisee buy products from a designated distributor?

Yes

Item 8

You must purchase all equipment, fixtures, inventory, supplies and services from our designated suppliers and contractors or in accordance with our specifications.

Must equipment be purchased from designated or approved suppliers?

Yes

Item 8

You must purchase all equipment, fixtures, inventory, supplies and services from our designated suppliers and contractors or in accordance with our specifications.

Payments

Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?

Yes

Franchise agreement

At Franchisor’s request, Franchisee must execute documents, including but not limited to, the Authorization attached as Attachment 4, that allow Franchisor to automatically take the Royalty Fee and Worldwide Creative Marketing Fee due as well as other sums due Franchisor, from business bank accounts via electronic…

Must the franchisee participate in a gift card program?

Yes

Franchise agreement

Franchisee agrees to sell or otherwise issue gift cards or certificates (together “Gift Cards”) that have been prepared utilizing the standard form of Gift Card provided or designated by Franchisor, including applications, and only in the manner specified by Franchisor in the Manuals or otherwise in writing.

People

Does the franchisor require minimum staffing levels or specific roles?

Yes

Item 15

During the entire term of the Franchise Agreement and any renewals, you must consistently employ and designate a minimum of one General Manager and two Managers who will be the main individuals responsible for the supervision, management and operation of the Franchised Business.

Point of sale

Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?

Yes

Item 11

You must purchase and use the point-of-sale system (“POS System”) we specify, and have the latest versions of hardware, software, peripherals and computer platforms to operate the POS System.

Does the franchisor have independent access to the data in the franchisee's POS or computer system?

Yes

Item 11

The POS System allows us to independently and remotely access all of your sales data, including your Gross Revenue, through the Internet.

Training

Can the franchisor charge the franchisee for additional, refresher or remedial training?

Yes

Item 11

We reserve the right to impose a reasonable fee for tuition and/or attendance for all additional training programs, including the annual business meeting or conference.

Is attendance at an annual convention or conference mandatory for the franchisee?

Yes

Item 11

If we require it, you must attend mandatory additional training offered by us for up to 5 days each year, and/or attend an annual business meeting or franchisee conference for up to 5 days each year at a location we designate.

The filing answers no to 3 questions

Is the franchisor or an affiliate itself a supplier of required products, services or systems?Item 8
Is there a franchisee advisory council, association or committee?Item 11
Must the franchisee participate in a regional advertising cooperative when one exists?Item 11

The vendor opportunity at Cilantro Taco Grill

Cilantro Taco Grill is a quick-service restaurant concept headquartered in Illinois with 15 company-owned locations and no franchised units reported in the 2024 FDD. For software vendors, the immediate addressable market is confined to these 15 corporate units. Year-over-year unit growth is not disclosed, and no operator footprint is mapped in our corpus, which means expansion-driven software procurement is not a near-term catalyst. The absence of a parent company suggests independent ownership, keeping decision-making centralized.

Who controls software purchasing

The 2024 FDD Item 1 lists four executives: Cuahutémoc Morfin (Owner), Hernan Valencia Morfin (Chief Technology Officer), Gerardo Morfin (Chief Operations Officer), and Aaron DeAngelo Morfin (Chief Marketing Officer). The CTO, Hernan Valencia Morfin, is the most direct entry point for software vendors. In a 15-unit, owner-operated chain, the CTO likely holds significant influence over technology evaluation and procurement, with final approval resting with ownership. There is no franchised operator layer to navigate, so a pitch to HQ covers the entire system.

Mandated and current tech stack

The 2024 FDD does not capture any mandated or recommended technology systems. No POS, back-office, payroll, or inventory management vendors are named. This absence of Item 11 tech mandates means the brand either has no standardized stack or chooses not to disclose it to franchisees—though with no franchisees, the latter is moot. Vendors should treat Cilantro Taco Grill as a blank-slate opportunity where the current tech environment must be discovered through direct outreach to the CTO.

Procurement, renewals, and timing

Item 8 of the FDD provides no procurement signal, so the brand’s supplier model—whether designated, approved, or open—is not publicly known. Renewal conditions under Item 17 are detailed: franchisees must be in full compliance, have no more than three defaults during the term, no monetary defaults in the prior 12 months, provide six months’ written notice, execute a new franchise agreement, pay a Successor Agreement Fee, maintain location and trade dress, execute a general release, and meet then-current training requirements. The renewal term is 10 years. Because all current units are company-owned, these renewal triggers do not create franchisee-driven software evaluation windows. Any software purchasing cycle will be internally driven by HQ on their own timeline.

How to read the Cilantro Taco Grill FDD

The full 2024 Franchise Disclosure Document is embedded below. It contains the legal and operational disclosures that govern the franchise relationship, including Item 1 executives, Item 8 procurement obligations, Item 11 technology requirements, and Item 17 renewal terms. Reviewing the FDD directly gives software vendors the factual basis to align a pitch with the brand’s actual constraints and decision-making structure. For a ranked target list of franchise systems matched to your software category, FranCloud can help.

Ordinary royalty terms

Complete royalty terms are not confirmed.

Questions vendors ask

Cilantro Taco Grill, answered from the filing

Chief Technology Officer Hernan Valencia Morfin is the named technology executive in the 2024 FDD. As a small, HQ-controlled chain, purchasing decisions likely route through him and ownership.

The 2024 FDD does not mandate or recommend any specific POS, operational, or technology systems. Vendors should approach with a greenfield assessment.

The 2024 FDD reports 15 total units, all company-owned. No franchised units are disclosed, making this a small, corporate-controlled footprint.

The 2024 FDD does not include an Item 8 procurement signal, so whether they use designated suppliers, approved suppliers, or an open model is not publicly disclosed.

With a 10-year initial term and renewal requiring six months' written notice, contract windows are infrequent. No recent unit growth data suggests limited expansion-driven openings.

The 2024 FDD is filed with state franchise regulators. You can view the embedded PDF viewer below to review the full disclosure directly.

Source

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Operator footprint

No franchisee network yet. Cilantro Taco Grill’s latest FDD reports no franchised locations.

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Primary franchise filings · updated June 2026. Read the original filing for definitions, conditions, and qualifications.