Costa Vida Fresh Mexican Grill

The franchise fee of $30,000 is $5,000-$10,000 below typical for fast casual restaurants. What specific advantages or market conditions justify this lower entry point compared to competitors?

Your financial performance metrics (median sales of $2.0M+) significantly exceed category norms. What percentage of the 93 current units are reporting these sales figures in Item 19, and does this represent a typical franchisee experience?

In 2023, 4 units closed and 3 experienced other exits while the system grew by only 1 net unit. Can you provide details on why these 7 units exited, whether any were underperforming locations, and what support was provided to prevent closure?

The bottom quartile sales of $1.3M still exceeds the typical range. What is the actual range of sales performance across all reporting units, including any underperforming locations, to understand the distribution of outcomes?

Personal guarantees are required from all franchise owners per the liability clause. Under what circumstances could a franchisee be held jointly and severally liable, and what specific expenses or attorney fees have been pursued in the past?

Renewal requires signing the current agreement form and complying with 7 conditions. What changes to the franchise agreement or operational requirements have been implemented in past renewals, and would franchisees be required to accept substantially different terms?

The renewal fee is $7,500. Is this fee subject to adjustment or increases, and does the franchisor have the right to modify renewal terms significantly as a condition of renewal?

With zero terminations in the past 3 years, what triggers franchisor termination rights, and has the franchisor exercised the option to non-renew any franchisees?

The non-compete clause spans 2 years and 5 miles. After franchise termination or expiration, can a former franchisee work in a competing fast casual restaurant within 5 miles during the 2-year period, and has this been enforced?

The system has exclusive territory protection. How is territory size determined for new franchisees, and what is the average territory geography (population, area, sales potential)?

What percentage of the 93 current units have transferred ownership since their original opening, and what is the average hold period before transfer?

Can you provide the full range of initial investment required (build-out, equipment, working capital) beyond the $30,000 franchise fee, and what percentage of franchisees require franchisor financing or lender relationships?

The turnover rate of 1.1% annually translates to approximately 1 unit per year. Are these exits concentrated in specific geographic regions or unit age cohorts, or distributed randomly throughout the system?

What support and training is provided to address the performance gap between top quartile units ($3.2M) and bottom quartile units ($1.3M)?

Has the franchisor implemented any changes to the franchise agreement, royalty structure, or operational requirements in the past 5 years that would apply to existing franchisees?

The 10-year initial term is longer than some competitors. What are the typical reasons franchisees seek early exit or non-renewal, and are there early termination provisions available?

Technology fee is not listed as a separate charge. Are technology costs (POS systems, ordering platforms, delivery integration) included in the 6% royalty, or billed separately?

What is the total 5-year cost projection for a franchisee, including franchise fee, build-out, working capital, and all ongoing fees for a typical unit?

Can you provide a breakdown of the 2022-2024 closures by reason (financial difficulty, owner retirement, relocation, franchisor non-renewal, other) to understand exit patterns?

The franchisor's territory score is perfect (100/100). How does the franchisor prevent encroachment within the 5-mile non-compete area, and what dispute resolution exists if a franchisee claims territory violation?