What are the exceptions to the abandonment clause for a Costa Vida Fresh Mexican Grill restaurant?
Costa_Vida_Fresh_Mexican_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
You abandon or fail to actively operate your Restaurant for three consecutive days unless your Restaurant has been closed for a purpose approved in advance by us in writing or because of fire, flood or other casualty or government order.
Source: Item 22 — CONTRACTS (FDD pages 66–67)
What This Means (2025 FDD)
According to the 2025 FDD, a Costa Vida Fresh Mexican Grill restaurant is considered abandoned if it fails to actively operate for three consecutive days. However, there are exceptions to this rule. The abandonment clause does not apply if the restaurant has been closed for a purpose approved in advance in writing by Costa Vida Management, LLC.
Additionally, the abandonment clause is waived if the closure is due to circumstances beyond the franchisee's control, such as fire, flood, other casualty, or a government order. These exceptions protect the franchisee from being in breach of contract due to unforeseen or unavoidable circumstances that force the temporary closure of the Costa Vida Fresh Mexican Grill restaurant.
It is important for prospective Costa Vida Fresh Mexican Grill franchisees to understand these exceptions, as a violation of the abandonment clause could lead to termination of the franchise agreement. Franchisees should ensure they obtain written approval from Costa Vida Management, LLC for any planned closures and maintain thorough records of any closures due to casualty or government order.