What are 'Licensed Ingredients' for Costa Vida Fresh Mexican Grill?

According to Costa Vida Fresh Mexican Grill's 2025 Franchise Disclosure Document, 'Licensed Ingredients' are defined as products not designated as Proprietary Ingredients. Franchisees are required to purchase Proprietary Ingredients from Designated Suppliers, which may include Costa Vida Fresh Mexican Grill, its affiliates, or authorized third-party manufacturers. However, for Licensed Ingredients, franchisees have more flexibility and can purchase from Approved Suppliers, which also include Costa Vida Fresh Mexican Grill, its affiliates, or authorized third parties.

Prospective Costa Vida Fresh Mexican Grill franchisees should understand the distinction between Proprietary and Licensed Ingredients, as it affects their sourcing options. While Proprietary Ingredients must come from Designated Suppliers to maintain the brand's unique flavor profiles, franchisees can propose alternative Approved Suppliers for Licensed Ingredients, potentially allowing for cost savings or preferred vendor relationships. However, this is subject to Costa Vida Fresh Mexican Grill's approval.

To gain approval for an alternative supplier of Licensed Ingredients, a Costa Vida Fresh Mexican Grill franchisee must provide written notice including the supplier's name, address, and any information requested by Costa Vida Fresh Mexican Grill, potentially including financial and operational details. Costa Vida Fresh Mexican Grill may also request product samples, specifications, and permission to inspect the supplier's facilities. This process ensures that all ingredients meet Costa Vida Fresh Mexican Grill's standards, even if sourced from alternative suppliers.

Costa Vida Fresh Mexican Grill retains the right to designate any ingredient as Proprietary, which could limit a franchisee's sourcing options. Franchisees should carefully review the Operations Manual and Franchise Agreement to understand which ingredients are classified as Proprietary versus Licensed and the procedures for proposing alternative suppliers. Understanding these requirements is crucial for managing costs and maintaining compliance with Costa Vida Fresh Mexican Grill's standards.