What representations about the Costa Vida Fresh Mexican Grill franchise program should franchisees NOT rely on?
Costa_Vida_Fresh_Mexican_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as expressly set forth in Item 19 of the Franchise Disclosure Document provided to you prior to the execution of this Agreement, we expressly disclaim the making of, and you acknowledge that you have not received or relied upon, any representation, guaranty, or warranty expressed or implied, as to the sales volume, income, earnings, expenses, revenues, profits or success of Costa Vida Restaurants or the business venture contemplated by this Agreement or the extent to which we will continue to develop and expand the network of Costa Vida Restaurants. You further acknowledge that you have not received or relied on any representations about the franchise, the Company, or its franchising program or policies from us or our officers, directors, shareholders, employees, or agents that are contrary to the statements made in our Franchise Disclosure Document or the terms of this Agreement. Any information acquired by you from other Costa Vida franchisees relating to sales, income, earnings, expenses, revenues, profits or success of any franchised Costa Vida Restaurant does not constitute information obtained from us; nor do we make any representation as to the accuracy of any information. You acknowledge and agree that Costa Vida's officers, directors, employees, and agents act only in a representative, and not in a personal, capacity in connection with any of our dealings with you.
Source: Item 22 — CONTRACTS (FDD pages 66–67)
What This Means (2025 FDD)
According to the 2025 Costa Vida Fresh Mexican Grill FDD, franchisees should not rely on any representations, guarantees, or warranties regarding potential sales volume, income, earnings, expenses, revenues, profits, or the overall success of Costa Vida restaurants, unless these representations are explicitly stated in Item 19 of the Franchise Disclosure Document. This means that any projections or promises made outside of the formal financial performance representation in the FDD are not endorsed or guaranteed by Costa Vida Fresh Mexican Grill.
Furthermore, prospective Costa Vida Fresh Mexican Grill franchisees should not rely on any representations about the franchise, the company, or its franchising program or policies from the franchisor's officers, directors, shareholders, employees, or agents if those representations contradict the statements made in the Franchise Disclosure Document or the terms of the Franchise Agreement. This is a standard clause in franchise agreements to ensure that all franchisees are operating under the same understanding of the business relationship, based on the documented information provided in the FDD and franchise agreement.
Costa Vida Fresh Mexican Grill also clarifies that any information acquired from other Costa Vida Fresh Mexican Grill franchisees regarding sales, income, earnings, expenses, revenues, profits, or success does not constitute information provided by the franchisor. The franchisor does not make any representations about the accuracy of such information. This is because the performance of individual franchises can vary widely based on factors like location, management, and local market conditions. Therefore, prospective franchisees should view such information as anecdotal and not as a reliable predictor of their own potential success. Finally, franchisees must acknowledge that Costa Vida Fresh Mexican Grill's personnel act only in a representative capacity and not a personal one during their dealings.