During the term of the Costa Vida Fresh Mexican Grill franchise, what activities are considered non-competition?
Costa_Vida_Fresh_Mexican_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise or Other Agreement | Summary | |
|---|---|---|---|
| q. Non-competition covenants during the | Section 9 | No involvement in any competing business, regardless of its | |
| term of the franchise | location. | ||
| p. | Non-competition covenants during the term of the Area Development Agreement | Section 6 | No involvement in any competing business, regardless of its location; may not divert or attempt to divert business or customers to competing business. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 55–60)
What This Means (2025 FDD)
According to the 2025 FDD, during the term of the Costa Vida Fresh Mexican Grill franchise agreement, franchisees are prohibited from any involvement in any competing business, regardless of the business's location. This non-compete obligation is also present in the Area Development Agreement.
This means that as a Costa Vida Fresh Mexican Grill franchisee, you are restricted from engaging in any business activities that compete with Costa Vida, irrespective of where that competing business is situated. This restriction is in place for the duration of the franchise agreement.
This is a fairly standard clause in franchise agreements, designed to protect the brand and prevent franchisees from using the franchisor's knowledge and resources to benefit a competing venture. Prospective franchisees should carefully consider this restriction and ensure they are fully committed to the Costa Vida Fresh Mexican Grill business model before signing the agreement.