When are payments for Proprietary Ingredients due for a Costa Vida Fresh Mexican Grill franchise?
Costa_Vida_Fresh_Mexican_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
- *Note 5.
You must purchase Proprietary and Licensed Ingredients from Designated and Approved Suppliers (See Item 8).
We may cause the Designated Suppliers and Approved Suppliers to sell you reasonable quantities of spices and other products.
All other Proprietary Ingredients are sold at prices and on shipping terms established periodically by the supplier thereof.
Source: Item 6 — OTHER FEES (FDD pages 16–22)
What This Means (2025 FDD)
According to the 2025 Costa Vida Fresh Mexican Grill Franchise Disclosure Document, franchisees must purchase Proprietary and Licensed Ingredients from Designated and Approved Suppliers. The FDD indicates that all other Proprietary Ingredients are sold at prices and on shipping terms established periodically by the supplier. The specific due dates for these payments are not explicitly outlined in Item 6 of the FDD.
While the FDD specifies that franchisees must pay all fees and other amounts under the Franchise Agreement when due, it does not provide a specific payment schedule for Proprietary Ingredients. It is common in franchising for ingredient suppliers to have varying payment terms, such as net 30 days, payment upon delivery, or other arrangements.
Prospective Costa Vida Fresh Mexican Grill franchisees should clarify the payment terms and due dates for Proprietary Ingredients with the franchisor during their due diligence. Understanding these payment terms is crucial for managing cash flow and ensuring timely payments to suppliers. This information can be obtained by contacting the franchisor directly or by speaking with existing franchisees.