obligation

What must a Costa Vida Fresh Mexican Grill franchisee do before developing and operating a restaurant at any site?

Costa_Vida_Fresh_Mexican_Grill Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (1) You must submit to us, in accordance with procedures we periodically establish, a complete site proposal, (the "Site Approval Package"), containing demographics information, traffic patterns, access, visibility, location of other retail food establishments (including other Costa Vida Restaurants) and size, condition, configuration, appearance and other physical characteristics of the site and all other information that we reasonably require for each site for a Costa Vida Restaurant that you propose to develop and operate and that you in good faith believe to conform to our then-current standard selection criteria for Costa Vida Restaurants;
  • (2) We will approve or reject each site for which you submit to us a complete Site Approval Package in accordance with subparagraph (1) above and, if we approve the site, we will do so by delivering our standard Site Approval Letter. Our Site Approval Letter, duly signed by us, is the exclusive means by which we approve a proposed site, and no other direct or indirect representation, approval or acceptance, whether in writing or verbally, by any of our officers, employees or agents, shall be effective or bind us. We will use all reasonable efforts to make a site approval decision and, if the site is approved, deliver a Site Approval Letter to you within 30 days after we receive the complete Site Approval Package and any other materials we have requested. In deciding whether to approve or reject a site you propose, we may consider such factors as we, in our sole discretion, deem appropriate, including the general location and neighborhood, demographics information, traffic patterns, access, visibility, location of other retail food establishments (including other Costa Vida Restaurants) and size, condition, configuration, appearance and other physical characteristics of the site. Neither our approval of a proposed site, nor any information communicated to you regarding our standard site-selection criteria or your proposed site or the advice or recommendation of any Approved Suppliers constitutes a warranty or representation of any kind, express or implied, as to the suitability of the proposed site, but merely signifies that we are willing to grant the right to a franchise for a Costa Vida Restaurant at that location in accordance with the terms of this Agreement. You acknowledge that your decision to develop and operate a Costa Vida Restaurant at any site is based solely on your own independent investigation of the suitability of the site for a Costa Vida Restaurant. In consideration of our approval of a proposed site, you and your Owners agree to release

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, a franchisee must first submit a complete site proposal, known as the Site Approval Package, to the company. This package should include demographic information, traffic patterns, accessibility details, visibility assessments, the location of other food establishments (including other Costa Vida Fresh Mexican Grill restaurants), and the physical characteristics of the site, such as size, condition, configuration, and appearance. The Site Approval Package should contain all information that Costa Vida Fresh Mexican Grill reasonably requires and that the franchisee believes conforms to the company's standard selection criteria.

Costa Vida Fresh Mexican Grill will then either approve or reject the proposed site. If approved, the company will issue a standard Site Approval Letter, which is the exclusive means of site approval. The company aims to make a decision within 30 days of receiving the complete Site Approval Package. In evaluating the site, Costa Vida Fresh Mexican Grill may consider factors such as the location, neighborhood, demographics, traffic, access, visibility, the presence of other food establishments, and the site's physical attributes.

It is important to note that Costa Vida Fresh Mexican Grill's approval does not constitute a warranty or representation regarding the site's suitability. The franchisee is responsible for conducting their own independent investigation to determine if the site is appropriate for a Costa Vida Fresh Mexican Grill restaurant. By accepting the site approval, the franchisee agrees to release Costa Vida Fresh Mexican Grill from any liability related to the site selection and approval process.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.