What does 'control' mean in the context of defining an Affiliate of Costa Vida Fresh Mexican Grill?
Costa_Vida_Fresh_Mexican_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
The terms listed below have the meanings which follow them and include the plural as well as the singular. Other terms are defined elsewhere in this Agreement in the context in which they arise.
"Affiliate" – Any person or entity that directly or indirectly owns or controls the referenced party; that is directly or indirectly owned or controlled by the referenced party, or that is under common control with the referenced party. The term "control" means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of an entity, whether through ownership of voting securities, by contract or otherwise.
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, the term 'control' is specifically defined in relation to the term 'Affiliate.' An 'Affiliate' is any entity that directly or indirectly owns or controls Costa Vida Fresh Mexican Grill, is directly or indirectly owned or controlled by Costa Vida Fresh Mexican Grill, or is under common control with Costa Vida Fresh Mexican Grill.
The document clarifies that 'control' means possessing the power to direct the management and policies of an entity. This power can be exerted directly or indirectly, whether through owning voting securities, through a contract, or by other means. This definition is important because it broadens the scope of who is considered an 'Affiliate' beyond just direct ownership.
For a prospective Costa Vida Fresh Mexican Grill franchisee, this definition is crucial for understanding the relationships and potential influences within the Costa Vida Fresh Mexican Grill franchise system. It clarifies that control can be exerted through various means, not just direct ownership, and that affiliated entities could have a significant impact on the franchise operation. Franchisees should be aware of these potential relationships and how they might affect their business.