What is the late payment fee for Costa Vida Fresh Mexican Grill?
Costa_Vida_Fresh_Mexican_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
in connection with such "quality control" programs.*
- Note 7. You must pay us all fees and other amounts under the Franchise Agreement when due. If you fail to do so, we have the right to charge a $100 late fee per delinquent payment, and at our request you must pay it by way of direct debit as described in Note 3 above. Further, you must submit all mandatory reports to us when due, as required by the Franchise Agreement. If you fail to do so, we have the right to charge a $25 late fee per late report and an additional $25 late fee for each day that the report continues to be delinquent, payable by direct debit at our request.
- *Note 8. You must pay all business debts, financial obligations, liens and taxes promptly when due. If you fail to do so, we have the right, at our option, to pay the same and then be entitled to immediate reimbursement from you. Unpaid debts owed to us bear interest from the due date until paid at the lesser of one and one-half percent (1.5%) per month or the maximum contract rate permitted by the
Source: Item 6 — OTHER FEES (FDD pages 16–22)
What This Means (2025 FDD)
According to Costa Vida Fresh Mexican Grill's 2025 Franchise Disclosure Document, if a franchisee fails to make payments when due, Costa Vida Fresh Mexican Grill has the right to charge a $100 late fee per delinquent payment. This fee is payable by direct debit at Costa Vida Fresh Mexican Grill's request.
In addition to late payment fees, Costa Vida Fresh Mexican Grill also charges late fees for the submission of mandatory reports. If a franchisee fails to submit reports when due, Costa Vida Fresh Mexican Grill can charge a $25 late fee per late report, and an additional $25 late fee for each day that the report continues to be delinquent. These report late fees are also payable by direct debit at Costa Vida Fresh Mexican Grill's request.
Furthermore, if a franchisee fails to pay business debts, financial obligations, liens, and taxes promptly when due, Costa Vida Fresh Mexican Grill has the option to pay these obligations and seek immediate reimbursement from the franchisee. Unpaid debts owed to Costa Vida Fresh Mexican Grill will bear interest from the due date until paid at a rate of the lesser of 1.5% per month or the maximum contract rate permitted by the law of the state in which the Restaurant is located. This highlights the importance of managing finances and adhering to payment schedules to avoid incurring these additional costs and potential interest charges.