Is a Costa Vida Fresh Mexican Grill franchisee restricted as to the customers they may serve?
Costa_Vida_Fresh_Mexican_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
You are not restricted as to the customers whom you may serve at the Costa Vida Restaurant. However, without our written consent, you may not offer Costa Vida Products approved for sale or services of your Restaurant or any materials, supplies, or inventory bearing the Costa Vida Trademarks at any site other than your Restaurant premises (other than catering events that you may book) or through any alternative channel of distribution (as further described in Item 12 above). In addition, you may not offer for sale any materials, supplies or inventory used in the preparation of any of the Costa Vida Products. You may only sell finished Costa Vida Products that have been approved for sale at your Restaurant and only to retail customers, and you may not sell any Costa Vida Products to any person or entity purchasing the Costa Vida Products for resale. In addition, you may not use the site of your Restaurant for any purpose other than the operation of a Costa Vida Restaurant in compliance with the Franchise Agreement.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 53–55)
What This Means (2025 FDD)
According to Costa Vida Fresh Mexican Grill's 2025 Franchise Disclosure Document, franchisees are generally not restricted in terms of who they can serve at their restaurant. However, there are specific limitations regarding where and how Costa Vida products can be sold. Franchisees cannot sell Costa Vida products approved for sale or services of their restaurant, or any materials, supplies, or inventory bearing the Costa Vida Trademarks, at any site other than their restaurant premises without written consent from Costa Vida Fresh Mexican Grill. An exception is made for catering events that the franchisee may book.
Furthermore, franchisees are prohibited from selling materials, supplies, or inventory used in the preparation of Costa Vida products. They are only allowed to sell finished Costa Vida products that have been approved for sale at their restaurant and only to retail customers. Selling Costa Vida products to any person or entity for resale is not permitted. The restaurant site must be used solely for the operation of a Costa Vida Fresh Mexican Grill in compliance with the Franchise Agreement.
These restrictions ensure that Costa Vida Fresh Mexican Grill maintains control over its brand and distribution channels. While franchisees have the freedom to serve any customer at their restaurant, they must adhere to the specific guidelines regarding product sales and distribution to protect the brand's integrity and prevent unauthorized resale or distribution of Costa Vida products.