Costa Vida Fresh Mexican Grill Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$659,500 - $1,300,000
Franchise Fee
$15,000
Min Cash Required
$50,000
Total US Locations
88
Business Summary
Costa Vida operates fast-casual restaurants specializing in fresh Mexican grill items like burritos, salads, enchiladas, tacos, quesadillas, tropical beverages, and desserts. Costa Vida restaurants emphasize a coastal ambiance and provide both take-out service and dine-in seating, featuring a custom-made, prepared-to-order food service counter.
Corporate History
Costa Vida Management, LLC, the franchisor, was legally formed as a Utah limited liability company on September 28, 2009, and conducts business under the names Costa Vida, CVM, and Costa Vida Management. The company's business activities, through its predecessor entity, have been ongoing since June 2004. Costa Vida Management, LLC began offering franchises for its restaurant concept in June 2004, also through its predecessor. The franchisor's parent company, CV Holdings, LC, established in March 2008, also owns and operates several Costa Vida franchises through various subsidiaries.
Financial Overview
Investment Range
$659,500 - $1,300,000
Franchise Fee (Low)
$15,000
Franchise Fee (High)
$30,000
Minimum Cash Required
$50,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$505,000
Equipment Costs (High)
$968,000
Working Capital
$75,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Costa Vida Management, LLC's financial statements show positive members' equity and an unqualified audit opinion, indicating healthy financial reporting. However, cash decreased significantly in 2023, while accounts receivable and "due from related parties" increased. The company manages various funds for franchisees, including restricted cash for local marketing and a marketing administration fee fund. The auditors found no substantial doubt about Costa Vida Management, LLC's ability to continue as a going concern. In 2022, Costa Vida Management, LLC received a substantial Employee Retention Credit refund of $678,863.
Financing Details
Costa Vida does not offer direct or indirect financing to its franchisees and does not guarantee any notes, leases, or other financial obligations that a franchisee might incur.
Performance Metrics
Total US Locations
88
Franchised Units
49
Corporate Units
42
Avg Square Footage
3,100
Franchising Since
2004
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Costa Vida has no litigation to report in Item 3 of its Franchise Disclosure Document.
Bankruptcy History
Costa Vida has no bankruptcy history to report in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Costa Vida franchisees must provide written notice between 6 and 12 months before the current term expires. They must be in full compliance with their current franchise agreement and all other agreements with Costa Vida or its affiliates, and have satisfied all monetary obligations in a timely manner. Franchisees must also have the right to continue leasing or owning their location for the new term, agree to refurbish, remodel, redecorate, and renovate their restaurant to meet current system standards, and sign Costa Vida's then-current franchise agreement and a renewal addendum (which includes a general release). The new agreement may include different royalty and marketing fees, other charges, and changes in performance criteria and other terms.
Training & Support Program
Franchisor Assistance
Costa Vida Management, LLC provides franchisees with comprehensive support both before and after their restaurant opens. Before opening, Costa Vida offers general guidance for site selection, a sample sketch layout, and mandatory introductory training for the owner, operating partner, general manager, and prep cook (with franchisees responsible for related expenses like travel and lodging). Franchisees also receive the Costa Vida Operations Manual, Recipe Books, and Menu Builds, along with opening operational assistance for their first restaurant, including on-site help, if requested or if they haven't previously owned a Costa Vida location. An initial "Brand Immersion" meeting is also required to familiarize franchisees with the system. After opening, Costa Vida offers ongoing assistance through periodic guidance on system improvements and changes, regular updates to the Operations Manual, and issuance of new specifications and operating procedures. Franchisees can purchase proprietary and licensed ingredients from designated suppliers. Costa Vida may also administer marketing and advertising funds, provide periodic and ongoing training programs (with franchisees covering expenses and potential fees for extra training), and offer guidance for establishing certified internal training programs. Additionally, franchisees and their operating partners, along with general managers, are required to attend an annual Costa Vida Brand Conference and a Franchise Business Review meeting, covering their own travel and lodging.
Initial Training Hours
547
Training Location
Franchisor's Headquarters in Utah
Ongoing Support
After a Costa Vida restaurant opens, franchisees receive ongoing support including periodic guidance on system improvements and changes, modifications to the Operations Manual, and new operating specifications. Costa Vida facilitates the purchase of proprietary ingredients through designated suppliers. At its discretion, Costa Vida may also administer marketing and advertising funds. Franchisees and their operating partners, along with general managers, are required to attend an annual Costa Vida Brand Conference and a Franchise Business Review meeting, for which they cover their own travel and lodging expenses. Periodic and additional training programs are also offered, with franchisees responsible for associated costs and potential fees for extra training.
Franchise Requirements
Ideal Candidate Profile
Costa Vida seeks individuals with strong management skills, business acumen, and experience in restaurant operations. Franchisees must designate an Operating Partner who will be engaged full-time in the business, have authority over operational decisions, and complete Costa Vida's training program. This Operating Partner must dedicate their best efforts to developing and operating the restaurants and should not have other substantial management responsibilities that could conflict with their franchise obligations.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Full-Time
Territory Type
Protected
Staff Count
11
Territory Size Requirements
Costa Vida franchisees receive a protected territory defined as a one-mile radius around their approved restaurant location. In densely populated areas, Costa Vida Management, LLC reserves the right to define this protected area based on census population figures. The territorial rights within this area are not tied to sales volume or market penetration targets.
Staffing Notes
Costa Vida Management, LLC requires each Costa Vida restaurant to be staffed with at least one trained General Manager and one trained Prep Cook, along with an appropriate number of assistant managers, shift supervisors, and food preparation personnel to ensure all shifts are covered by at least one assistant manager or shift supervisor. The General Manager and Prep Cook roles must be full-time and typically cannot be combined with other positions, though the Operating Partner may serve as the General Manager for a franchisee's first location. All food preparation must be supervised on-site by a ServSafe-certified individual at all times the restaurant is open. Franchisees are responsible for all hiring and employment decisions, and are prohibited from recruiting employees from Costa Vida Management, LLC or other franchisees without consent.