What does Costa Vida Fresh Mexican Grill state about the dependence of the venture's success on the franchisee?
Costa_Vida_Fresh_Mexican_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Document and understand and accept the provisions of this Agreement as being reasonably necessary to maintain our high standards of quality and service and the uniformity of those standards at all Costa Vida Restaurants franchised or operated by us and to protect and preserve the goodwill of the Marks. [Franchisee's Initials] 2. You acknowledge that you have conducted an independent investigation of the business venture contemplated by this Agreement and you recognize that, like any other business, the nature of the business contemplated by this Agreement may change over time, that an investment in a Costa Vida Restaurant involves business risks, and that the success of the venture is largely dependent upon your business abilities and efforts. [Franchisee's Initials] 3. You acknowledge and understand that any information relating to the sales, profits or cash flows of Costa Vida Restaurants operated by us, our Affiliates, or our franchisees that is contained in our Franchisee Disclosure Document and other materials is intended only to be an indication of historical performance of certain Costa Vida Restaurants and NOT a prediction of potential future financial performance. [Franchisee's Initials] 4. Except for the financial performance representations, if any, included in our Franchise Disclosure Document, we expressly disclaim the making of, and you acknowledge that you have not received or relied on, any express or implied warranty or guarantee as to the revenues, profits or success of the business venture contemplated by this Agreement. [Franchisee's Initials] 5. You acknowledge and understand that our officers, directors, employees and agents are acting only in a representative and not a personal capacity in their dealings with you. You also acknowledge and represent that you have not received or relied on any representations about us or our franchise program or policies from us or our officers, directors, employees or agents that are contrary to the statements made in our Franchise Disclosure Docum
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, the success of a Costa Vida Fresh Mexican Grill restaurant is largely dependent on the franchisee's business abilities and efforts. The document emphasizes that while it provides historical performance data of certain Costa Vida Fresh Mexican Grill restaurants, this information is not a guarantee or prediction of future financial performance.
This acknowledgement highlights the importance of a franchisee's active role in managing and operating the restaurant. It suggests that Costa Vida Fresh Mexican Grill does not attribute success solely to its brand or system, but recognizes the significant impact of the franchisee's capabilities. Prospective franchisees should carefully consider their own business acumen, work ethic, and management skills before investing in a Costa Vida Fresh Mexican Grill franchise.
Costa Vida Fresh Mexican Grill also disclaims any express or implied warranty or guarantee as to the revenues, profits, or success of the business venture, except for any financial performance representations included in the Franchise Disclosure Document. This further underscores the risk involved in the venture and the reliance on the franchisee's abilities to drive success. This is a common disclaimer in franchise agreements, as franchisors cannot guarantee the success of individual franchise locations due to varying market conditions and management styles.