Can Costa Vida Fresh Mexican Grill change their site-approval conditions at any time?
Costa_Vida_Fresh_Mexican_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Costa Vida Restaurants are typically located in stand-alone sites and shopping center outparcels. We suggest a corner or end-cap location, with at least 30 feet of minimum frontage. Additionally, your Restaurant must have access to at least 30 dedicated parking spaces if it is not located in a high-pedestrian location. Outside seating is highly recommended. This is not an exhaustive list of site-approval conditions, and we may change our recommendations or approval conditions at any time. We cannot estimate the amount of your monthly rental payments, since rental amounts vary greatly from site to site and are affected by a number of factors, including location, size, visibility, accessibility, and competitive market conditions. In addition to rental payments, your lease may obligate you to make other payments to the landlord, such as payments for shopping-center or building operating expenses, common-area maintenance expenses, food-court expenses, merchants' association assessments, assessment for shopping-center promotion and advertising, and the like. Your lease may also require you to spend a certain amount on advertising and promotion for your particular Restaurant. Again, because these payments vary widely from lease to lease and from location to location, we cannot estimate the amount that you may have to pay for these or other similar items. You will make rental payments as directed by your Landlord. Leases may also require percentage rent. If you or one of your Owners, Investors or Affiliates at any time acquires the ownership of the premises for your Restaurant, you must immediately notify us and we may require that you or such Owner, Investor or Affiliate (1) enter into an agreement with us in recordable form granting us the right and option, in the event of a termination (for whatever reason) of the Franchise Agreement, to lease the premises at fair market rental rates for a term coterminous with the term of the Franchise Agreement for such premises; or (2) enter into a prime lease with us at fair market rental rates for a term coterminous with the term of the Franchise Agreement for such premises and a sublease with us on the same terms as the prime lease. The prime lease and sublease referenced in the preceding sentence shall be on the then-current lease and sublease forms used by us.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 22–27)
What This Means (2025 FDD)
According to Costa Vida Fresh Mexican Grill's 2025 Franchise Disclosure Document, the brand retains the right to modify its site-approval conditions at any time. While the document outlines typical site preferences, such as stand-alone locations or shopping center outparcels with a minimum frontage of 30 feet and at least 30 dedicated parking spaces (unless in a high-pedestrian area), these are not exhaustive requirements.
This flexibility means that Costa Vida Fresh Mexican Grill can adapt its location criteria based on market trends, brand strategy, or other factors. For a prospective franchisee, this implies that initial site assessments and approvals are subject to change. It is crucial to maintain open communication with the franchisor regarding any updates to site requirements during the location selection process.
This clause protects Costa Vida Fresh Mexican Grill, allowing them to evolve their brand and real estate strategy as needed. However, it introduces an element of uncertainty for franchisees, who must be prepared for potential changes in site criteria. Franchisees should seek clarification from Costa Vida Fresh Mexican Grill on the frequency and nature of potential changes to site-approval conditions to better assess the risks and opportunities associated with securing a location.