What is an 'Affiliated Restaurant' in the Costa Vida Fresh Mexican Grill franchise agreement?

According to the 2025 Costa Vida Fresh Mexican Grill Franchise Disclosure Document, an Affiliated Restaurant is not explicitly defined. However, the document does define a "Costa Vida Restaurant" or "Restaurant" as a restaurant featuring Mexican fare with a custom prepared-to-order food service counter, or any other outlet selling any Costa Vida Products for on- or off-premises consumption and services, all as designated by Costa Vida Fresh Mexican Grill and developed and operated with their approval and consent, which they, or any of their Affiliates, own, operate or franchise and which uses the Marks and the System.

This definition implies that an Affiliated Restaurant is a Costa Vida Restaurant that is owned, operated, or franchised by an entity affiliated with Costa Vida Fresh Mexican Grill. This could include restaurants directly owned by the parent company or those operated under a franchise agreement by a subsidiary or related company.

Understanding the distinction between franchised and affiliated restaurants is important for prospective franchisees. It clarifies the competitive landscape and the potential influence of Costa Vida Fresh Mexican Grill's corporate interests on the franchise system. Franchisees should inquire about the number and location of affiliated restaurants to assess potential competition and ensure a clear understanding of the franchisor's operational strategies.