When are the security and utility deposits due for a Costa Vida Fresh Mexican Grill franchise?
Costa_Vida_Fresh_Mexican_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
estate lease costs) | | | |
| Type of Expenditure | Amount | Method of | When Due | To Whom Payment | ||
|---|---|---|---|---|---|---|
| Payment | Is to Be Made | |||||
| Security & utility deposits (See Note 9 below) | $1,000-$18,000 | As arranged | As incurred | Vendors, utility companies, landlord | ||
| Insurance (See Note 10 | $1,500-$5,000 | As incurred | Annually | Insurance brokers, insurance | ||
| below) | company | |||||
| Additional funds - three months (See Note 11 below) | $50,000-$100,000 | Lump sum | As incurred | Vendors, employees, utilities, landlord, etc. | ||
| Totals | $674,500-1,34 |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 22–27)
What This Means (2025 FDD)
According to Costa Vida Fresh Mexican Grill's 2025 Franchise Disclosure Document, security and utility deposits, which range from $1,000 to $18,000, are due 'as incurred.' This means these deposits are typically required when the franchisee applies for the relevant services with vendors, utility companies, or the landlord. The specific timing will depend on the policies of these individual entities.
Prospective Costa Vida Fresh Mexican Grill franchisees should budget for these deposits as part of their initial investment. Since the deposits are paid directly to third-party vendors, utility companies, or the landlord, the franchisee will need to make arrangements with each of these entities individually. The FDD notes that the deposit amounts can vary significantly by location, so franchisees should verify the specific amounts with local utility companies and the landlord during their due diligence process.
Understanding the 'as incurred' timeline is crucial for managing cash flow during the initial setup phase. Franchisees should proactively contact utility companies and the landlord to determine deposit requirements and payment schedules. This will help avoid any delays in securing essential services and occupying the premises. Note 9 in Item 7 of the Costa Vida Fresh Mexican Grill FDD states that these deposits may or may not be refundable, so it is important to clarify this aspect with the relevant parties as well.
In summary, while the FDD provides an estimated range for security and utility deposits, the exact amount and due date will depend on the specific location and the policies of the vendors, utility companies, and landlord. Prospective Costa Vida Fresh Mexican Grill franchisees should conduct thorough research and communicate effectively with these entities to ensure a smooth and timely setup process.