What is the late fee charged by Costa Vida Fresh Mexican Grill for each delinquent payment?
Costa_Vida_Fresh_Mexican_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
dies we may have. Your failure to have sufficient funds available in the designated account in an amount equal to any amount then due or your failure to pay all amounts when due constitutes grounds for termination of this Agreement, as provided in Section 14 and 15 below, notwithstanding the provisions of this Section 6.C. To compensate us for our increased administrative costs of handling late payments, we shall have the right to charge a fee of $100 for each delinquent payment to us, due immediately upon becoming delinquent. All Royalty Fees and advertising contributions, and all other amounts which you owe to us shall also bear interest after coming due at the highest applicable legal rate for open-account business credit, but not to exceed 1.5% per month. You acknowledge that this Section 6.C shall not constitute our agreement to accept any payments after same are due or commitment by the Company to extend credit to, or otherwise finance your operation of, your Restaurant. Yo
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, if a franchisee's payment is overdue, Costa Vida Fresh Mexican Grill has the right to charge a $100 fee for each delinquent payment. This fee is due immediately upon the payment becoming delinquent.
In addition to the late fee, overdue amounts will also accrue interest from the date the payment was due until it is paid. The interest rate will be either the rate specified in the franchise agreement or the maximum rate permitted by law, whichever is lower. The franchisee is also responsible for a $25 late fee for each delinquent report, which is due when the report becomes delinquent. An additional $25 late fee will be incurred for each day that the report continues to be delinquent.
Costa Vida Fresh Mexican Grill may require franchisees to pay all late fees via automatic withdrawal (ACH) from a designated account. The document specifies that failure to maintain sufficient funds in the designated account to cover any amount due or failure to pay all amounts when due can be grounds for termination of the Franchise Agreement.