How does Costa Vida Fresh Mexican Grill require delinquent payments to be made?
Costa_Vida_Fresh_Mexican_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
tion with such "quality control" programs.*
- Note 7. You must pay us all fees and other amounts under the Franchise Agreement when due. If you fail to do so, we have the right to charge a $100 late fee per delinquent payment, and at our request you must pay it by way of direct debit as described in Note 3 above. Further, you must submit all mandatory reports to us when due, as required by the Franchise Agreement. If you fail to do so, we have the right to charge a $25 late fee per late report and an additional $25 late fee for each day that the report continues to be delinquent, payable by direct debit at our request.
- Note 8. You must pay all business debts, financial obligations, liens and taxes promptly when due. If you fail to do so, we have the right, at our option, to pay the same and then be entitled to immediate reimbursement from you. Unpaid debts owed to us bear interest from the due date until paid at the lesser of one and one-half percent (1.5%) per month or the maximum contract rate permitted by the law of the state in which your Restaurant is located.
- *Note 9.
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, if a franchisee fails to make payments on time, those payments are deemed delinquent. Costa Vida Fresh Mexican Grill has the right to charge a $100 late fee per delinquent payment. At Costa Vida Fresh Mexican Grill's request, the franchisee must pay it by way of direct debit.
Additionally, if a franchisee fails to submit mandatory reports when due, as required by the Franchise Agreement, Costa Vida Fresh Mexican Grill can charge a $25 late fee per late report. An additional $25 late fee will be charged for each day that the report continues to be delinquent. These late report fees are also payable by direct debit at Costa Vida Fresh Mexican Grill's request.
Furthermore, unpaid debts owed to Costa Vida Fresh Mexican Grill bear interest from the due date until paid. The interest rate is the lesser of one and one-half percent (1.5%) per month or the maximum contract rate permitted by the law of the state in which the Costa Vida Fresh Mexican Grill Restaurant is located. Franchisees should be aware of these penalties for late payments and reports, and factor them into their financial planning to avoid incurring additional costs.