Does Costa Vida Fresh Mexican Grill have a right of first refusal to purchase a franchise?
Costa_Vida_Fresh_Mexican_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
If you or any of your Owners desire to Transfer the Franchise for legal consideration, you or such Owner must obtain a bona fide, signed written offer from a qualified purchaser and must deliver immediately to us a complete and accurate copy of this offer. If the offeror proposes to buy any other property or rights from you or any of your Owners or Affiliates (other than rights under area development agreements or rights to other franchise
agreements for Costa Vida Restaurants) as part of the bona fide offer, the proposal for the Franchise must be set forth in a separate, contemporaneous offer that is fully disclosed to us, and the price and terms of purchase offered to you or your Owners for the Transfer of the Franchise must reflect the bona fide price offered therefore and may not reflect any value for any other property or rights.
Source: Item 22 — CONTRACTS (FDD pages 66–67)
What This Means (2025 FDD)
According to Costa Vida Fresh Mexican Grill's 2025 Franchise Disclosure Document, Costa Vida Fresh Mexican Grill has a right of first refusal if a franchisee or their owners desire to transfer the franchise for legal consideration. To initiate the transfer process, the franchisee or owner must obtain a bona fide, signed written offer from a qualified purchaser and provide Costa Vida Fresh Mexican Grill with a complete and accurate copy of the offer immediately.
If the offer includes the purchase of other property or rights from the franchisee, owners, or affiliates (excluding rights under area development agreements or other franchise agreements for Costa Vida Fresh Mexican Grill restaurants), the offer for the franchise must be presented in a separate, contemporaneous offer that is fully disclosed to Costa Vida Fresh Mexican Grill. The price and terms for transferring the franchise must reflect the actual bona fide price offered and cannot include any value for other property or rights.
This right of first refusal allows Costa Vida Fresh Mexican Grill to maintain control over who enters the franchise system. A prospective franchisee should understand these conditions, as they dictate the procedure for selling their franchise and ensure the franchisor has the opportunity to buy the franchise back before it is sold to a third party.