Does the Costa Vida Fresh Mexican Grill definition of 'us' in this section include Affiliates?

According to Costa Vida Fresh Mexican Grill's 2025 Franchise Disclosure Document, the definition of 'us' includes affiliates. The document defines 'Affiliate' as any entity that directly or indirectly owns or controls the referenced party, is owned or controlled by the referenced party, or is under common control with the referenced party. Control is defined as the power to direct the management and policies of an entity, whether through ownership, contract, or other means.

This definition is important for prospective franchisees because it clarifies the scope of Costa Vida Fresh Mexican Grill's rights and obligations. When the term 'us' is used in the agreement, it extends not only to the franchisor itself but also to its affiliates. This can have implications for various aspects of the franchise relationship, including development rights, operational standards, and competitive restrictions.

For example, the FDD states that during the term of the agreement, provided the franchisee and its affiliates are in compliance, Costa Vida Fresh Mexican Grill will grant franchises within the Development Area and will not operate or grant the right to operate any Costa Vida Restaurant within that area, either directly or through an affiliate, with certain exceptions. This clause protects the franchisee's territory from encroachment by the franchisor or its related entities.

Furthermore, the FDD specifies that a franchisee's right to develop each Costa Vida Restaurant is conditional on maintaining acceptable standards in all of the franchisee's and its affiliates' Costa Vida Restaurants. This means that the performance of affiliated restaurants can impact a franchisee's ability to expand. Therefore, understanding the definition of 'Affiliate' is crucial for comprehending the full extent of the franchisee's rights, obligations, and potential liabilities under the franchise agreement.