What agreements must be adhered to for operating opened Costa Vida Fresh Mexican Grill restaurants?
Costa_Vida_Fresh_Mexican_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
If we have not exercised our right of first refusal pursuant to Section 8.F below, we will not unreasonably withhold our approval of a Transfer that meets all of the reasonable restrictions, requirements and conditions we impose on the transfer, the transferor and the transferee, including the following:
- (i) you are operating your opened Restaurants in accordance with this Agreement, the Franchise Agreements, and all other associated agreements;
- (ii) you and your Owners and Affiliates are in compliance with the provisions of this Agreement, all Franchise Agreements signed pursuant hereto and all other agreements with us or any of our Affiliates;
- (iii) the proposed transferee, or its Owners (if the proposed transferee is a corporation, partnership, limited liability company or other legal entity), must: (a) provide us on a timely basis all information we request, (b) be individuals acting in their individual capacities who are of good character and reputation, (c) have sufficient business experience, aptitude and financial resources to develop, open and operate Costa Vida Restaurants within the Development Area pursuant to this Agreement, and (d) otherwise meet our approval;
(iv) the proposed transferee may not be an entity, or be affiliated with an entity, that is required to comply with reporting and information requirements of the Securities Exchange Act of 1934, as amended;
(v) the transferee (and its owners) must agree to be bound by all of the provisions of this Agreement for the remainder of its Term;
(vi) at our discretion, we may require that the transferee must acquire, in a concurrent transaction, all of your rights, and the rights of your Owners and Affiliates, under all agreements between you or your Affiliates and us or our Affiliates, including all Franchise Agreements for Costa Vida Restaurants signed by you or your Owners or Affiliates pursuant to this Agreement or pursuant to any other development or similar agreement with us;
Source: Item 23 — RECEIPTS (FDD pages 67–282)
What This Means (2025 FDD)
According to Costa Vida Fresh Mexican Grill's 2025 Franchise Disclosure Document, franchisees must operate their restaurants in accordance with the Franchise Agreement and all other associated agreements. This encompasses maintaining compliance with all provisions outlined in the agreement, as well as any supplementary agreements with Costa Vida Fresh Mexican Grill or its affiliates.
Specifically, the franchisee and their owners and affiliates must adhere to the stipulations within the Franchise Agreement and any other agreements with Costa Vida Fresh Mexican Grill. This includes ensuring that the proposed transferee meets the franchisor's standards regarding character, business experience, and financial resources if the franchisee seeks to transfer ownership. The transferee must also agree to be bound by the existing Franchise Agreement's terms for the remainder of its term.
These conditions ensure that Costa Vida Fresh Mexican Grill maintains consistent brand standards and operational practices across all franchise locations. By requiring adherence to these agreements, Costa Vida Fresh Mexican Grill aims to protect its brand reputation and the interests of all franchisees within the system. Prospective franchisees should carefully review all agreements to fully understand their obligations and the conditions under which they must operate their Costa Vida Fresh Mexican Grill restaurant.