How often are Royalty Fees payable to Costa Vida Fresh Mexican Grill?
Costa_Vida_Fresh_Mexican_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Agreement and Exhibit G to the Franchise Agreement. These fees are currently payable monthly on or before the 15th day of the following month. We expressly reserve the right in the Franchise Agreement to change the payment frequency and due dates of these fees, provided that they will not be payable more often than weekly.*
- *Note 4. These items include amounts paid to us or into a fund for marketing purposes and amounts generally expended by you for marketing and advertising each of your Costa Vida Restaurants. As of the effective date of this Disclosure Document, no amounts have been collected for the NMF, but we expressly reserve the right to collect them at any time. A Marketing Administration Fee of 0.5% of weekly Net Sales is collected from each franchisee along with the Royalty Fees.
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, the Royalty Fees are currently payable monthly. Specifically, these fees are due on or before the 15th day of the following month. Franchisees must complete an Authorization Agreement to permit electronic transfers for these payments.
Costa Vida Fresh Mexican Grill retains the right to modify the payment frequency and due dates for these fees. However, the Franchise Agreement stipulates that the fees will not be required more often than weekly. This provides a degree of predictability, while also allowing Costa Vida Fresh Mexican Grill some flexibility in adjusting payment schedules.
In addition to Royalty Fees, franchisees also pay a Marketing Administration Fee (MAF) of 0.5% of weekly Net Sales, which is collected along with the Royalty Fees. All Royalty Fees, advertising fees, information system fees and other amounts owed to Costa Vida Fresh Mexican Grill or its Affiliates must be paid via pre-authorized electronic bank transfer.