Where in the Costa Vida Fresh Mexican Grill Franchise Agreement can I find certain definitions?
Costa_Vida_Fresh_Mexican_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
"Designated Supplier" – Any supplier, including us, an Affiliate of ours or an independent third party, whom we authorize to manufacture Proprietary Ingredients and products.
"Ingredients" – Spices and other ingredients from which the distinctive food products are made for Costa Vida Restaurants.
"Licensed Ingredients" – Those Ingredients we periodically authorize to be produced by Approved Suppliers.
"Marks" – The trademarks, trade names, service marks, logos and other commercial symbols which we authorize franchisees to use to identify Costa Vida Products and/or services offered by Costa Vida Restaurants, including the trademarks and service marks COSTA VIDA and COSTA VIDA FRESH MEXICAN GRILL and the trade dress and the goodwill associated therewith; provided that we have the right to modify and/or discontinue the use of these trademarks, trade names, service marks, logos and other commercial symbols and the Trade Dress, and establish, in the future, additional or substitute trademarks, trade names, service marks, logos, commercial symbols or Trade Dress.
"Net Sales" – All revenues received or receivable by you as payment, whether in cash, credit, or other means of electronic payment or exchange, for sales of Costa Vida Products and any other items, goods and services made and offered in the operation of your Costa Vida Restaurant(s), whether or not these items are approved for sale from the Restaurant, including sales made at or away from your Restaurant. "Net Sales" excludes (i) all federal, state or municipal sales, use, or service taxes collected from customers and paid to the appropriate taxing authority, and (ii) tips, gratuities or service charges paid directly by customers to your employees or paid to you and promptly turned over to your employees in lieu of direct tips or gratuities. For items sold pursuant to coupons or other discounts (which must be approved by us), Net Sales also excludes the amount discounted from the purchase price of such item(s) and from sales of pre-paid gift cards or certificates, but franchisees must pay royalties on revenues received on redemption of gift cards or certificates at their Restaurant(s).
"Operating Partner" – The individual designated in Exhibit B to the Franchise Agreement and ADA and any replacement thereof approved by us.
Source: Item 22 — CONTRACTS (FDD pages 66–67)
What This Means (2025 FDD)
According to the 2025 Costa Vida Fresh Mexican Grill Franchise Disclosure Document, several key terms are defined within Item 22, which pertains to contracts. These definitions are crucial for understanding the obligations and rights of both the franchisor and the franchisee.
Specifically, the document defines terms such as "Designated Supplier," which refers to any supplier authorized by Costa Vida Fresh Mexican Grill to manufacture proprietary ingredients and products. It also defines "Ingredients" as the spices and other components used to make the distinctive food products for Costa Vida Restaurants, and "Licensed Ingredients," which are those ingredients authorized for production by Approved Suppliers. The definition of "Marks" includes the trademarks, trade names, service marks, and logos that franchisees are allowed to use to identify Costa Vida products and services. However, Costa Vida retains the right to modify or discontinue these marks.
Furthermore, the term "Net Sales" is defined as all revenues received by the franchisee for sales of Costa Vida products, excluding sales taxes and certain employee tips. It also clarifies how discounts and gift card redemptions affect the calculation of net sales for royalty purposes. Lastly, the "Operating Partner" is defined as the individual designated in Exhibit B of the Franchise Agreement, or any replacement approved by Costa Vida. These definitions help clarify the roles, responsibilities, and financial obligations within the franchise system.