What are 'Approved Suppliers' for Costa Vida Fresh Mexican Grill?
Costa_Vida_Fresh_Mexican_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Further, you must purchase certain other ingredients and products from suppliers, including us, our Affiliates or an independent third party, whom we authorize to manufacture or provide licensed or non-proprietary ingredients and products ("Approved Suppliers"), subject to your right to propose an alternative Approved Supplier for our approval as discussed below and set forth more fully in the Franchise Agreement.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 27–35)
What This Means (2025 FDD)
According to Costa Vida Fresh Mexican Grill's 2025 Franchise Disclosure Document, Approved Suppliers are entities, including Costa Vida Fresh Mexican Grill, its Affiliates, or independent third parties, authorized to manufacture or provide licensed or non-proprietary ingredients and products. Franchisees are required to purchase certain ingredients and products from these Approved Suppliers. However, franchisees have the option to propose an alternative supplier for approval by Costa Vida Fresh Mexican Grill.
If a franchisee wishes to use an alternative supplier, they must notify Costa Vida Fresh Mexican Grill and submit sufficient information, specifications, and samples for review. Costa Vida Fresh Mexican Grill may charge fees to cover the costs of this review. The franchisor will then notify the franchisee of their decision within a reasonable timeframe. Costa Vida Fresh Mexican Grill also formulates and modifies specifications and standards imposed on franchisees and suppliers, communicating these through the Operations Manual and written agreements.
Costa Vida Fresh Mexican Grill also attempts to negotiate purchase arrangements with third-party suppliers to benefit all Costa Vida Restaurants. Franchisees are not given any material benefits for using Designated or Approved Suppliers, and all Affiliate-owned Restaurants pay the same prices to vendors as franchised Restaurants. Costa Vida Fresh Mexican Grill also participates in a food distribution program with Sysco Corporation, requiring franchisees to purchase at least 90% of their food and paper supplies through this program. Additionally, franchisees must participate in a marketing program with Coca-Cola, purchasing Coca-Cola products from designated distributors.