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Costa Vida Fresh Mexican Grill Franchise ProfileRestaurant Franchises > Quick-Service Restaurants |
What Are the Initial Investment Requirements for a Costa Vida Franchise?
To open a Costa Vida Fresh Mexican Grill franchise, you will need to prepare for an initial investment that ranges from $659,500 to $1,061,000. This includes a franchise fee of $30,000. Additionally, you should have a net worth between $500,000 and $1,000,000 and be ready to cover ongoing costs such as a 6% royalty fee and a 2% marketing fee. It's essential to have sufficient cash on hand to meet these financial prerequisites before proceeding.
What Is the Average Revenue Potential for Costa Vida Franchisees?
Costa Vida franchisees can expect an average annual revenue of approximately $1,467,153 per unit. The revenue potential varies, with the lowest annual revenue recorded at $535,925 and the highest reaching $3,475,520. This revenue capability highlights the brand's strong market presence and customer appeal, making it a potentially lucrative investment for franchisees.
How Quickly Can You Expect to Break Even with a Costa Vida Franchise?
Franchisees can anticipate a breakeven period of around 12 months after opening their Costa Vida location. This relatively quick return on investment is supported by the average investment payback period of 24 months, indicating that with effective management and marketing, franchisees can recoup their initial investment in a timely manner.
What Are the Ongoing Operating Costs for a Costa Vida Franchise?
Operating a Costa Vida franchise involves various expenses, with total annual running costs averaging around $828,236. Key expenses include rent ($291,521), labor ($418,086), and marketing ($30,000). Understanding these costs is crucial for franchisees to maintain profitability and manage their financial performance effectively.
Costa Vida Fresh Mexican Grill Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Costa Vida Fresh Mexican Grill Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2017 | 2018 | 2019 |
|---|---|---|---|
| Total Units | 83 | 92 | 84 |
| Net Change YoY | 9 | -8 | |
| Franchised Units | 67 | 69 | 58 |
| Net Change YoY | 2 | -11 | |
| Corporate Units | 16 | 23 | 26 |
| Net Change YoY | 7 | 3 |
Company Background
Costa Vida Fresh Mexican Grill is a fast-casual restaurant chain specializing in fresh, made-to-order Mexican cuisine. Founded in 2003 in Lehi, Utah, Costa Vida emphasizes healthy, flavorful dishes made from high-quality ingredients. The menu features a variety of options, including burritos, tacos, salads, and nachos, all inspired by the vibrant flavors of coastal Mexico. With a commitment to freshness and customer satisfaction, Costa Vida has grown to become a popular choice among diners seeking a quick yet delicious meal.
Franchise Opportunity
Investing in a Costa Vida franchise presents a unique opportunity to join a growing brand in the fast-casual dining sector. With a proven business model and a strong support system, franchisees can tap into the increasing demand for fresh, flavorful Mexican cuisine. The initial investment ranges from $659,500 to $1,061,000, which includes a franchise fee of $30,000. This investment provides access to a successful brand with a loyal customer base and the potential for significant revenue.
Financial Performance
Costa Vida franchises have demonstrated strong financial performance, with an average annual revenue of approximately $1,467,153 per unit. The profitability of the business is supported by a gross profit margin of 69.1%. Franchisees can expect a breakeven time of around 12 months, with an investment payback period of approximately 24 months. These metrics highlight the potential for a lucrative return on investment for dedicated franchise owners.
Royalty and Marketing Fees
Franchisees are required to pay a royalty fee of 6% of gross sales, along with a marketing fee of 2%. These fees contribute to the overall brand support and marketing initiatives that help drive customer traffic and brand recognition. By investing in the brand’s marketing efforts, franchisees benefit from a collaborative approach to building a strong presence in their local markets.
Corporate Structure
Costa Vida operates under the corporate umbrella of Costa Vida Franchising, LLC. The company has shown steady growth since its inception, with a combination of franchised and corporate-owned units. As of the latest data, there are 84 total units, with 58 of those being franchised. This corporate structure allows for streamlined operations and consistent brand standards across all locations.
Company Mission
The mission of Costa Vida Fresh Mexican Grill is to provide guests with a memorable dining experience through fresh, high-quality food and exceptional service. The brand is dedicated to creating a vibrant atmosphere that reflects the spirit of coastal Mexico while promoting a healthy lifestyle. By focusing on freshness and customer satisfaction, Costa Vida aims to be the go-to destination for those seeking delicious Mexican cuisine in a fast-casual setting.
Frequently Asked Questions
The initial investment for a Costa Vida franchise ranges from $659,500 to $1,061,000, which includes the franchise fee and other startup costs.