What specific document is the Costa Vida Fresh Mexican Grill Guaranty related to?
Costa_Vida_Fresh_Mexican_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
If we accept a proposed site pursuant to Section 3.B above, and you demonstrate the requisite financial and management capabilities (if requested by us) pursuant to Section 3.C above, then we agree to offer you the rights to a franchise to operate a Costa Vida Restaurant at the proposed site by delivering to you our then-current form of standard Franchise Agreement, together with all standard ancillary documents (including exhibits, addendum, riders, collateral assignments of leases, Owner guaranties and other related documents) that we then customarily use in granting franchises for the operation of Costa Vida Restaurants in the state in which the Costa Vida Restaurant is to be located, as follows:
Source: Item 23 — RECEIPTS (FDD pages 67–282)
What This Means (2025 FDD)
According to the 2025 Costa Vida Fresh Mexican Grill Franchise Disclosure Document, if Costa Vida Fresh Mexican Grill accepts a proposed site and the franchisee demonstrates the necessary financial and management capabilities, Costa Vida Fresh Mexican Grill will offer the rights to a franchise. This offer includes the then-current form of the standard Franchise Agreement, along with all standard ancillary documents. These ancillary documents include exhibits, addenda, riders, collateral assignments of leases, Owner guaranties, and other related documents that Costa Vida Fresh Mexican Grill customarily uses when granting franchises for operating a Costa Vida Restaurant in the relevant state.
This means that the Owner guaranty is one of the standard documents associated with the Franchise Agreement. Prospective franchisees should carefully review the Franchise Agreement and all associated documents, including the Owner guaranty, with legal and financial advisors to fully understand their obligations and potential liabilities. The guaranty likely requires the owner to personally guarantee the franchisee's obligations under the Franchise Agreement, which could put the owner's personal assets at risk if the franchise fails.
It is important for potential Costa Vida Fresh Mexican Grill franchisees to understand the full scope of the Franchise Agreement and all related documents before signing. Franchisors often require personal guarantees to ensure that franchisees are fully committed to the business and to provide an additional layer of security for the franchisor. Franchisees should seek professional advice to assess the risks and benefits of providing such a guarantee.