Can a Costa Vida Fresh Mexican Grill franchisee propose an alternative Approved Supplier?
Costa_Vida_Fresh_Mexican_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Further, you must purchase certain other ingredients and products from suppliers, including us, our Affiliates or an independent third party, whom we authorize to manufacture or provide licensed or non-proprietary ingredients and products ("Approved Suppliers"), subject to your right to propose an alternative Approved Supplier for our approval as discussed below and set forth more fully in the Franchise Agreement.
If you propose to use any brand and/or supplier that is not then approved by us, you must first notify us and submit sufficient information, specifications, and samples concerning the brand and/or supplier so that we can decided whether the brand complies with our specifications and standards and/or such supplier meets our approved supplier criteria. We have the right to charge reasonable fees to cover our costs. We will notify you of our decision within a reasonable period of time. We may prescribe procedures for the submission of requests for approval and impose
You or the proposed distributor or supplier shall pay to us in advance all of our reasonably anticipated costs in reviewing the application of the Alternate Approved Supplier and all current and future reasonable costs and expenses, including travel and living costs, related to inspecting, re-inspecting and auditing the Alternative Approved Suppliers' facilities, equipment, and food products, and all product testing costs paid by us to third parties. You acknowledge and agree that we do not act in a fiduciary capacity for you in our relationship with Alternative Approved Suppliers. We may impose limits on the number of Alternative Approved Suppliers. We have the right to monitor the quality of services provided by Alternative Approved Suppliers in a manner we deem appropriate and may terminate any Alternative Approved Supplier who does not meet our quality standards and specifications, as may be in effect at the time.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 27–35)
What This Means (2025 FDD)
According to Costa Vida Fresh Mexican Grill's 2025 Franchise Disclosure Document, franchisees have the right to propose an alternative Approved Supplier. However, this is subject to Costa Vida Fresh Mexican Grill's approval. The franchisee must notify Costa Vida Fresh Mexican Grill and submit sufficient information, specifications, and samples concerning the brand or supplier for consideration. Costa Vida Fresh Mexican Grill may charge reasonable fees to cover their costs in evaluating the proposed supplier.
Costa Vida Fresh Mexican Grill will then notify the franchisee of their decision within a reasonable period. They may also prescribe procedures for the submission of requests for approval and impose obligations on suppliers, potentially requiring a written agreement. Costa Vida Fresh Mexican Grill may also limit the number of suppliers or brands for any items.
The franchisee or the proposed distributor/supplier is responsible for covering all reasonably anticipated costs for reviewing the application, including inspection, re-inspection, auditing, travel, living expenses, and product testing. Costa Vida Fresh Mexican Grill may also monitor the quality of services provided by Alternative Approved Suppliers and terminate any supplier who does not meet their quality standards. Overall, while franchisees can propose alternative suppliers, Costa Vida Fresh Mexican Grill retains significant control over the approval process and supplier selection to maintain system-wide standards and cost efficiency.