What is the base transfer fee for a Costa Vida Fresh Mexican Grill franchise transfer?
Costa_Vida_Fresh_Mexican_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
ired 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
Source: Item 23 — RECEIPTS (FDD pages 67–282)
What This Means (2025 FDD)
According to the 2025 FDD, the base transfer fee for a Costa Vida Fresh Mexican Grill franchise is $10,000. However, the total transfer fee may increase depending on the number of franchise agreements signed.
The FDD states that the transfer fee is $10,000, plus an additional $10,000 for each Costa Vida Restaurant for which a Franchise Agreement has been signed. This means that if a franchisee has multiple Costa Vida restaurants under separate franchise agreements, they will have to pay an additional $10,000 per restaurant on top of the base transfer fee.
In addition to the transfer fee, the franchisee and the transferee must meet other conditions for the transfer to be approved, such as operating the restaurants in compliance with the agreements, being in compliance with all agreements with Costa Vida Fresh Mexican Grill, and ensuring the transferee meets Costa Vida Fresh Mexican Grill's approval criteria. The transfer is also subject to Costa Vida Fresh Mexican Grill's right of first refusal.