What is the estimated range for insurance costs for a Costa Vida Fresh Mexican Grill franchise?
Costa_Vida_Fresh_Mexican_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 11. This estimate includes working capital for the first three months and includes general operating expenses, such as lease payments, inventory, payroll expenses, facility expenses, insurance, pest control, security, repairs, and maintenance and complimentary sales, store-level employee wages and benefits, point-of-purchase collateral, other marketing costs, maintenance, linens, cleaning and office supplies, leased equipment, occupancy expenses, credit-card processing fees, and other costs. This estimate does not include salaries and expenses during training of your Operating Partner (described in Item 15 below) whose training is required by the Franchise Agreement and/or the Area Development Agreement. Because you and/or your Operating Partner and your other personnel for your Restaurant, as well as personnel in management positions and personnel that will work in more than one Restaurant, are required to complete our training program before opening your first Restaurant (see Item 11 below), these expenses are included for your first Restaurant. Consequently, the additional funds necessary for your first Restaurant tend to be on the high end of the estimated range, while the additional funds required for subsequent Restaurants that you open may be lower. Your costs may depend upon factors such as how well you follow Costa Vida's methods and procedures; the amount spent and effectiveness of your grand opening marketing activities; your management skill, experience, and business acumen; local economic conditions; the time of the year your Restaurant is opened; the demand for the Restaurant's food and services in your area; the prevailing wage rates; competition; and the sales level reached during the initial period. These estimates also do not take into account the finance charges, interest and related costs you may incur if any portion of your investment is debt-financed. These figures are estimates, and we cannot promise that you will not have additional expenses in starting your Costa Vida Restaurant.
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 cost of insurance is included as part of the estimated initial investment. Note 11 states that the estimate includes working capital for the first three months and includes general operating expenses, such as lease payments, inventory, payroll expenses, facility expenses, insurance, pest control, security, repairs, and maintenance and complimentary sales, store-level employee wages and benefits, point-of-purchase collateral, other marketing costs, maintenance, linens, cleaning and office supplies, leased equipment, occupancy expenses, credit-card processing fees, and other costs.
However, the specific estimated cost range for insurance is not explicitly broken out in Item 7. The overall estimated initial investment ranges from $814,700 to $1,298,000, which encompasses all the listed expenses, including insurance.
Prospective franchisees should inquire with Costa Vida Fresh Mexican Grill about typical insurance costs to better understand this component of the initial investment. Additionally, franchisees must obtain and keep in force the appropriate insurance coverages as described in Item 8 of the Disclosure Document, with Costa Vida named as an additional insured or loss payee on each policy, as applicable.