Who is required to sign the Costa Vida Fresh Mexican Grill Ownership Addendum, and in what capacity?
Costa_Vida_Fresh_Mexican_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Costa Vida Management, LLC, a Utah limited liability company "Franchisor") and [], [] ("you" or "Area Developer") ("we", "us", the "Company" or have, as of [], entered into a certain Costa Vida® Area Development Agreement ("Area Development Agreement") and desire to supplement its terms, as set out below. The parties therefore agree as follows: 1. Operating Partner. The name, home address, and social security number of the Operating Partner are as follows: NAME SSN 2. Entity Type of Area Developer. Area Developer Developer's [directors, officers or managers / general partners] as of is a [limited liability company / corporation / general partnership / limited partnership], which was [organized/formed] on the day of , 20, under the laws of the State of Its Federal Employer Identification Number is It has not conducted business under any name other than its [company/corporate/partnership] name. The following is a list of all of Area NAME OF [DIRECTOR/OFFICER/MANAGER/GENERAL PARTNER] []. POSITION 3. Area Developer. Owners. Area Developer and each of its Owners represents and warrants that the following is a complete and accurate list of all Owners of Area Developer, including the full name, mailing address, and social security number of each Owner, and fully describes the nature and extent of each Owner's interest in Area Developer and each Owner as to his/her ownership interest in Area Developer, represents and warrants that each Owner is the sole and exclusive legal beneficial owner of his/her ownership interest in Area Developer, free and clear of all liens, restrictions, agreements and encumbrances of any kind or nature, other than those required or permitted by the Agreement. OWNER'S NAME SSN OWNER'S ADDRESS OWNERSHIP PERCENTAGE [] [] [] 4. Change. You must immediately notify us in writing of any change in the information contained in this Addendum and, at our request, prepare and sign a new Addendum containing the correct information. 5. Date of Addendum. The date of this Addendum is [].
Source: Item 23 — RECEIPTS (FDD pages 67–282)
What This Means (2025 FDD)
According to the 2025 Costa Vida Fresh Mexican Grill FDD, both the Area Developer and each of its Owners are required to sign the Ownership Addendum. The Area Developer signs to supplement the terms of the Area Development Agreement. Each Owner, which includes individuals or entities owning 10% or more of the ownership interests in the Area Developer, must also sign the addendum. If an Owner is an entity, the owners of that entity must also sign, effectively tracing back to all natural persons with the requisite ownership interests.
The Ownership Addendum requires the Area Developer and each Owner to provide a complete and accurate list of all Owners, including their names, addresses, and social security numbers, and to fully describe the nature and extent of each Owner's interest. They must also warrant that each Owner is the sole and exclusive legal beneficial owner of their interest, free of any liens or encumbrances. This ensures Costa Vida Fresh Mexican Grill has a clear understanding of the ownership structure and the individuals involved.
The FDD also states that the Area Developer must immediately notify Costa Vida Fresh Mexican Grill in writing of any changes to the information in the addendum and, if requested, prepare and sign a new addendum with the correct information. The date of the addendum must also be included. This ensures that Costa Vida Fresh Mexican Grill maintains current and accurate records of the ownership structure of each franchise.
This requirement is typical in franchising, as franchisors want to know who the individuals are behind the business and ensure they are committed to the brand and its standards. By requiring all owners to sign the addendum, Costa Vida Fresh Mexican Grill can directly enforce the agreement against both the Area Developer and its Owners, ensuring compliance and protecting its interests.