What does the Lease Review Fee for a Costa Vida Fresh Mexican Grill franchise cover?
Costa_Vida_Fresh_Mexican_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon submission of a proposed site for your Restaurant, you agree that you may, in extraordinary circumstances, be required to pay to us or our Designated Supplier (which may be an Affiliate) a lease-review fee that is in the amount equal to the market rate for similar services as determined by us ("Lease Review Fee"). The Lease Review Fee pays the expenses incurred by us to review and (if we so choose) negotiate certain provisions of the lease. You agree that you are not a third-party beneficiary of the lease negotiation or review. You agree that any lease review will not constitute an express or implied representation or warranty of any kind, as to its fairness or as to the suitability of the Lease for a Costa Vida Restaurant or as to your ability to comply with the terms of the lease or for any other purpose. You agree that we do not guarantee that the terms, including rent, will represent the most favorable terms available in that market. We may charge you only one Lease Review Fee unless you refuse to or do not sign a lease that we have certified as acceptable for your Restaurant, and we are then required to engage in one or more additional lease reviews for your Restaurant, in which case you may, in extraordinary circumstances, have to pay us or our Designated Supplier an additional Lease Review Fee for each additional lease review.
Source: Item 22 — CONTRACTS (FDD pages 66–67)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Costa Vida Fresh Mexican Grill franchisees may, in extraordinary circumstances, be required to pay a Lease Review Fee. This fee is equal to the market rate for similar services, as determined by Costa Vida Fresh Mexican Grill. The Lease Review Fee covers the expenses Costa Vida Fresh Mexican Grill incurs to review and potentially negotiate certain provisions of the lease for the franchisee's restaurant location.
It's important to note that any lease review does not constitute a warranty regarding the fairness of the lease or the suitability of the premises for a Costa Vida Fresh Mexican Grill restaurant. Nor does it guarantee the franchisee's ability to comply with the lease terms or that the lease terms, including rent, will be the most favorable available in the market. The franchisee is not considered a third-party beneficiary of the lease negotiation or review.
Costa Vida Fresh Mexican Grill may charge only one Lease Review Fee unless the franchisee refuses to sign a lease that Costa Vida Fresh Mexican Grill has deemed acceptable. If additional lease reviews are required due to the franchisee's refusal, the franchisee may have to pay an additional Lease Review Fee for each subsequent review. Prospective franchisees should be aware of these potential costs and the circumstances under which they may be incurred.