factual

Does Costa Vida Fresh Mexican Grill assume any liability with respect to the administration of the NMF?

Costa_Vida_Fresh_Mexican_Grill Franchise · 2025 FDD

Answer from 2025 FDD Document

Except as otherwise expressly provided in this Section 10.C, we assume no direct or indirect liability or obligation with respect to the maintenance, direction or administration of the NMF. We do not act as trustee or in any other fiduciary capacity with respect to the NMF.

Source: Item 22 — CONTRACTS (FDD pages 66–67)

What This Means (2025 FDD)

According to Costa Vida Fresh Mexican Grill's 2025 Franchise Disclosure Document, Costa Vida Fresh Mexican Grill assumes no direct or indirect liability or obligation regarding the maintenance, direction, or administration of the National Marketing Fund (NMF). The document specifies that Costa Vida Fresh Mexican Grill does not act as a trustee or in any fiduciary capacity with respect to the NMF.

This means that while Costa Vida Fresh Mexican Grill may establish and administer the NMF, franchisees cannot hold them liable for any issues related to its management. The NMF is intended for marketing, advertising, and related programs, with franchisees contributing up to 2% of Net Sales. Costa Vida Fresh Mexican Grill Restaurants owned by Costa Vida Fresh Mexican Grill and its Affiliates contribute on the same basis as franchisees.

Costa Vida Fresh Mexican Grill will provide an annual statement of monies collected and costs incurred by the NMF upon written request. The final authority on all programs financed by the NMF rests with Costa Vida Fresh Mexican Grill, granting them sole discretion over aspects such as media, creative concepts, and suppliers. Franchisees should be aware that while they contribute to the NMF, Costa Vida Fresh Mexican Grill has the ultimate control and assumes no liability for its administration.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.