Costa Vida Fresh Mexican Grill has carved out a loyal following across the American West with its Baja-style burritos, handmade tortillas, and fresh-from-scratch ingredients. Founded in 2003 in Layton, Utah, this fast-casual chain has grown to more than 100 locations across 15 states and Canada, delivering a dining experience that blends coastal Mexican flavors with genuine hospitality. For entrepreneurs eyeing a proven restaurant franchise in the burgeoning fast-casual segment, Costa Vida presents a compelling opportunity.
But launching a Costa Vida location requires significant upfront capital. The total investment typically falls between $674,500 and $1,340,000, which means most prospective franchisees need smart, strategic financing to make their restaurant dream a reality. Whether you are an experienced multi-unit operator or a first-time franchise owner, understanding your Costa Vida franchise loan options is the critical first step toward opening your doors.
This guide covers everything you need to know about financing a Costa Vida Fresh Mexican Grill franchise, from SBA loan programs to equipment financing, qualification requirements, and how Crestmont Capital helps franchise owners secure funding fast.
In This Article
Costa Vida Fresh Mexican Grill was founded in 2003 by Kenny Prestwich and JD Gardner in Layton, Utah. The brand emerged from a simple but powerful idea: that Mexican food could be made from scratch every single day, with real ingredients, delivered in an atmosphere reminiscent of a Baja California beach vacation. The name "Costa Vida" translates to "coastal life," which reflects the brand's entire identity.
The early franchise history has an interesting wrinkle. Sean Collins and Dave Rutter were among the brand's first franchisees, and by 2008 they had acquired a controlling ownership interest in the company, effectively transitioning from operators to franchisors. This is a powerful endorsement of the concept: the people who actually ran a Costa Vida franchise liked it so much they bought the whole chain.
In 2011, Costa Vida expanded further through a merger with Abundant Brands, which converted 16 Bajio Mexican Grill locations into Costa Vida units. Today, the brand operates approximately 108 locations across more than 15 U.S. states plus Canada, with the heaviest concentration in Utah (which hosts 53 locations), followed by other western and central states including Arizona, California, Colorado, Idaho, Nevada, Texas, and Washington.
The brand differentiates itself through its commitment to made-from-scratch cooking. Every tortilla is handmade fresh daily. Sauces, guacamole, and proteins are prepared in-house. The menu centers on customizable Baja-style burritos, tacos, salads, enchiladas, and quesadillas. This operational approach creates a food quality story that resonates strongly with health-conscious, quality-seeking consumers.
From a franchise investment perspective, Costa Vida offers a mature brand with a loyal regional customer base, a relatively streamlined kitchen operation compared to traditional sit-down restaurants, and a fast-casual format that generates strong throughput during peak periods. The brand has also developed a reputation for franchisee support, offering a two-week initial training program at the corporate facility covering operational procedures, brand standards, customer service best practices, and ongoing field support.
According to the Small Business Administration, franchise businesses typically have higher success rates than independent startups, partly because franchisees benefit from established systems, supplier relationships, and brand recognition. Costa Vida's track record over two decades makes it an attractive investment for qualified operators.
Before exploring financing options, it is essential to understand exactly what you are financing. The Costa Vida franchise cost consists of several components, from the one-time franchise fee to ongoing royalties and estimated startup costs.
| Cost Component | Amount / Range | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000 | One-time; veteran discount available |
| Total Investment Range | $674,500 - $1,340,000 | Includes all startup costs |
| Liquid Capital Required | $375,000 - $625,000 | Minimum cash you must have accessible |
| Net Worth Requirement | $750,000 - $2,000,000 | Total assets minus liabilities |
| Royalty Fee | 6% of net sales | Ongoing weekly or monthly |
| Marketing/Brand Fund | 0.5% - 2% of net sales | National and local marketing support |
| Franchise Term | 10 years (renewable) | Renewal option available |
The total investment range of $674,500 to $1,340,000 covers all the costs of building out and opening a new Costa Vida location, including real estate (leasehold improvements), equipment, furniture, fixtures, signage, initial inventory, training costs, and working capital to carry you through the first few months of operations.
Most new franchise owners do not have $674,500 to $1,340,000 sitting in a bank account. That is exactly why franchise financing exists. The goal of most franchise financing strategies is to use a combination of your own equity (liquid capital) and borrowed capital (loans) to reach that total investment target while preserving enough cash reserves to operate the business comfortably once you open.
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Apply Now →Franchise owners financing a Costa Vida location typically use one of several loan products or a combination of them. Here is a detailed breakdown of the most common options:
The SBA 7(a) loan program is the most popular choice for franchise financing in the United States. These loans are partially guaranteed by the U.S. Small Business Administration, which reduces the lender's risk and allows for better terms for borrowers. SBA 7(a) loans can be used for working capital, equipment, leasehold improvements, and the franchise fee itself.
Key features of SBA 7(a) loans for Costa Vida franchise owners:
If you plan to own the real estate where your Costa Vida is located, the SBA 504 loan program offers long-term, fixed-rate financing for owner-occupied commercial real estate and major equipment purchases. This program pairs an SBA-backed loan from a Certified Development Company (CDC) with a conventional loan from a bank.
Traditional business term loans from banks, credit unions, and alternative lenders provide lump-sum capital repaid over a fixed term with set monthly payments. These can fund the franchise fee, construction, or equipment without the SBA's paperwork requirements, though they often carry higher rates and shorter terms than SBA products.
Restaurant equipment is a major cost component in any fast-casual franchise buildout. Commercial refrigerators, prep stations, cooking equipment, tortilla presses, POS systems, and more all add up quickly. Equipment financing allows you to spread these costs over 36 to 72 months, often with rates below conventional loans because the equipment itself serves as collateral.
A business line of credit is a revolving credit facility that gives you access to funds as needed, up to your approved limit. For franchise owners, a line of credit is particularly useful for managing seasonal fluctuations in cash flow, handling unexpected repair costs, or funding local marketing campaigns.
The first 3 to 6 months after opening a new restaurant location are often the most cash-intensive. Working capital loans provide the short-term funding needed to pay staff, purchase inventory, and cover operating costs while you build your customer base and revenue grows to match your overhead.
By the Numbers
Costa Vida Franchise - Key Investment Stats
$30K
Initial Franchise Fee
$674K-$1.34M
Total Investment Range
6%
Ongoing Royalty Fee
108+
U.S. and Canada Locations
2003
Year Founded
10 Yrs
Initial Franchise Term
Knowing which loan products are available is one thing. Knowing how to actually navigate the process from first inquiry to funded is another. Here is a step-by-step walkthrough of how most Costa Vida franchise financing works in practice:
Before you can secure financing, you need approval from Costa Vida's corporate team. This typically involves completing a franchise application, providing financial documentation, and going through an interview process. The corporate team evaluates your financial strength, business experience, and fit with the brand's culture and values.
Work with Costa Vida's development team to estimate the total investment for your specific market and site. Costs vary depending on real estate costs, construction pricing in your area, and the size of the location. A realistic total investment figure typically falls between $674,500 and $1,340,000 for a standard restaurant build-out.
Most lenders want to see you put 10% to 30% of the total project cost in from your own funds. For a $900,000 project, that means $90,000 to $270,000 in equity. Having strong liquid capital not only satisfies lender requirements but also demonstrates commitment to the project and gives you a buffer for unexpected costs.
Submit your loan application with a lender experienced in franchise financing. Crestmont Capital specializes in this and can help you navigate SBA programs, conventional loans, and equipment financing all in one place. The application typically requires:
Once approved, funds are typically disbursed in draws as construction milestones are completed. Equipment financing may fund separately, allowing you to order kitchen equipment while the physical build-out is underway. Your lender coordinates the timing to ensure funds are available when needed throughout the project.
Lenders evaluate franchise loan applications using a combination of personal financial strength, business track record, and the strength of the franchise brand itself. Here is what most lenders look for when reviewing a Costa Vida franchise loan application:
Most SBA lenders prefer a personal credit score of 680 or higher for franchise loans. Scores below 650 do not automatically disqualify you, but they narrow your options and typically result in higher interest rates. Alternative lenders like Crestmont Capital can often work with scores in the 600 to 650 range when other financial indicators are strong.
As noted in Costa Vida's FDD, franchisees need $375,000 to $625,000 in liquid capital. This is the minimum cash the franchisor requires you to have available. Lenders use this figure as a baseline, though they also conduct their own analysis of your overall net worth and liquidity.
Costa Vida requires franchisees to have a net worth of $750,000 to $2,000,000. Lenders will independently verify this through personal financial statements and may request documentation of major assets like real estate, investment accounts, and retirement funds.
While you do not need prior restaurant experience to be approved as a Costa Vida franchisee, having management, operations, or food service experience strengthens both your franchise application and your loan application. Lenders view operational experience as a risk mitigator.
For secured loans, lenders may require collateral such as personal real estate, business assets, or both. SBA loans typically require a personal guarantee from owners with 20% or greater ownership stakes. The restaurant equipment and leasehold improvements also serve as collateral in many franchise lending structures.
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Check Your Options →The Small Business Administration's loan programs are among the best financing tools available to franchise investors. Here is a deeper look at how SBA loans work specifically for Costa Vida franchise owners:
The SBA 7(a) loan program is the most common choice for franchise financing because of its flexibility. You can use it for working capital, equipment, leasehold improvements, the franchise fee, and even to purchase an existing franchise location. For a Costa Vida build-out, a borrower might request $500,000 to $800,000 under this program, covering the bulk of construction and equipment costs.
The SBA guarantees 75% to 85% of the loan amount, which reduces the lender's exposure and makes them more willing to approve larger amounts at longer terms and lower rates than conventional loans alone. SBA 7(a) loans carry terms of 7 to 10 years for working capital and equipment, with interest rates typically between 7.5% and 12% depending on loan amount and borrower profile.
Not all franchises qualify for SBA financing, but established brands like Costa Vida are generally eligible. The SBA maintains a list of approved franchise concepts, and working with a lender experienced in franchise SBA loans helps ensure your application is structured correctly and processed efficiently.
If you plan to purchase the commercial real estate where your Costa Vida is located (rather than leasing), the SBA 504 program provides long-term, fixed-rate financing at competitive rates. This program typically requires a 10% down payment, with 40% financed by a CDC (Certified Development Company) and 50% from a conventional bank lender.
Quick Fact: According to SBA data, restaurants and food service businesses consistently represent one of the top industries for SBA 7(a) loan approvals, reflecting strong lender confidence in the food franchise sector.
Crestmont Capital is a national business lender specializing in franchise financing, equipment loans, and working capital solutions for small and mid-sized businesses. Unlike traditional banks with slow approval timelines and rigid requirements, Crestmont Capital combines speed, flexibility, and expertise to get franchise owners funded efficiently.
Here is how Crestmont Capital supports Costa Vida franchise investors at every stage:
Crestmont Capital offers a full suite of financing products relevant to franchise ownership:
For franchise owners exploring their options, Crestmont Capital's advisors have helped owners finance a wide range of restaurant franchises. See our guides on Crumbl Cookie franchise financing and Domino's franchise loans for additional context on how we structure restaurant franchise financing.
To make these concepts more concrete, here are three different profiles of Costa Vida franchise investors and how they might structure their financing:
Scenario 1: The First-Time Franchise Owner
Maria is a corporate operations manager who has saved $400,000 over her career and wants to invest in her first franchise. She has a 710 credit score and $900,000 net worth. She is targeting a mid-range Costa Vida buildout estimated at $850,000. Maria puts in $250,000 of her own capital (approximately 29%) and finances the remaining $600,000 through an SBA 7(a) loan at a 10-year term. Her monthly SBA payment is approximately $7,200, which she can comfortably cover once the restaurant reaches its projected revenue run-rate in months 4 to 6.
Scenario 2: The Multi-Unit Operator
Jason already owns two fast-casual franchise locations and wants to add Costa Vida as a third brand in his portfolio. He has an established business entity with 3 years of tax returns, a 760 credit score, and $1.5 million net worth. Because of his strong profile, Jason qualifies for a conventional business term loan at slightly better rates than SBA and finances $700,000 of his $1.1 million project through a combination of a 7-year term loan ($550,000) and an equipment financing line ($150,000). He puts in $400,000 in equity to keep his debt service manageable.
Scenario 3: The Veteran Entrepreneur
David is a military veteran who spent 20 years in logistics and supply chain management. He qualifies for Costa Vida's veteran discount on the franchise fee and has $375,000 in liquid assets from his retirement accounts and savings. Using the SBA's Veterans Advantage program, he secures favorable SBA 7(a) financing with reduced fees and a 10-year repayment term. The combination of his veteran discount, reduced SBA fees, and structured equity contribution allows him to open his Costa Vida location with a manageable debt load from day one.
The fast-casual restaurant industry continues to grow, and Costa Vida is well-positioned within it. According to Forbes, the U.S. franchise industry contributes more than $800 billion to the economy annually, with food and beverage franchises consistently representing the largest segment. Investing in a proven brand like Costa Vida puts you in a market with strong consumer demand and established brand recognition.
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Apply Now →The total investment for a Costa Vida Fresh Mexican Grill franchise typically ranges from $674,500 to $1,340,000. This includes the $30,000 initial franchise fee, leasehold improvements, kitchen equipment, furniture and fixtures, initial inventory, training costs, and working capital. The exact amount varies based on your market, site size, and local construction costs.
Costa Vida charges a $30,000 initial franchise fee. Veterans may be eligible for a discount on this fee through Costa Vida's veteran incentive program. The franchise fee grants you the right to operate under the Costa Vida brand for an initial 10-year term, with renewal options available.
Yes. SBA 7(a) loans are one of the most common and effective ways to finance an established fast-casual franchise like Costa Vida. The SBA 7(a) program allows you to borrow up to $5 million with terms up to 10 years for equipment and working capital. Because Costa Vida is an established franchise brand with a documented operating history, it is generally well-received by SBA lenders.
Costa Vida's FDD indicates that franchisees should have $375,000 to $625,000 in liquid capital available. This is the minimum cash the franchisor wants to see you have accessible, separate from borrowed funds. Lenders may also require you to demonstrate you have sufficient liquidity to cover your equity contribution plus several months of operating expenses.
Most SBA lenders prefer a personal credit score of 680 or higher for franchise loans of this size. However, scores in the 640 to 679 range may still qualify depending on other factors like net worth, liquidity, and business experience. Alternative lenders sometimes work with scores as low as 600, though terms may differ. The strongest applicants generally have scores above 700.
Costa Vida charges a royalty fee of 6% of net sales, paid on a regular basis (typically weekly or monthly). In addition, franchisees contribute 0.5% to 2% of net sales to the brand's marketing and advertising fund. These are standard fast-casual restaurant franchise fee structures and should be factored into your financial projections when evaluating the investment.
SBA loans for franchise buildouts typically take 30 to 90 days from application to funding, depending on the lender, documentation completeness, and project complexity. Working capital loans and equipment financing can often be approved and funded much faster, sometimes within 5 to 15 business days. Starting the financing process early, ideally as soon as you have a signed or pending lease, allows ample time for the approval process.
Costa Vida does not require prior restaurant experience for franchise applicants, though it is preferred. What matters most is demonstrated management capability, strong financial resources, and a commitment to the brand. From a lender's perspective, relevant business experience (even outside food service) strengthens your loan application by demonstrating you have the skills to operate a business successfully.
Yes. Equipment financing is an excellent tool for restaurant franchise investors because it allows you to spread the cost of kitchen equipment over 36 to 60 months using the equipment itself as collateral. For Costa Vida, this could include commercial refrigerators, prep tables, tortilla presses, cooking equipment, POS systems, and other fixed restaurant assets. Equipment financing typically carries lower rates than unsecured loans and does not require as much collateral documentation.
Costa Vida operates approximately 108 locations across more than 15 U.S. states and Canada. The brand has its strongest presence in Utah, which hosts the majority of locations, followed by other western and central states including Arizona, California, Colorado, Idaho, Nevada, Texas, and Washington. The chain began franchising in 2004 and has maintained steady growth over two decades.
Costa Vida has demonstrated sustained brand viability over more than 20 years, with a loyal customer base, a differentiated menu concept, and an operational model that emphasizes fresh ingredients and quality. As with any franchise investment, success depends on location, management, local market conditions, and the franchisee's operational capabilities. Reviewing the FDD, speaking with existing franchisees, and working with a franchise attorney are important steps in evaluating whether Costa Vida is the right investment for you.
Costa Vida franchise agreements have a 10-year initial term with renewal options available. When structuring your financing, it is important to match loan repayment timelines with your franchise agreement term to avoid paying off a loan after you no longer hold the license to operate the franchise. SBA 7(a) loans with 10-year terms align well with the Costa Vida franchise term structure.
Yes. Crestmont Capital regularly works with first-time franchise investors. Our advisors understand the unique financing needs of new franchise owners and can guide you through the entire process, from structuring your loan application to preparing your financial documentation and navigating SBA requirements. We work with a broad network of lenders to find the best terms for your specific situation.
Standard documentation for a franchise loan application includes: 2-3 years of personal tax returns, a personal financial statement, a business plan with financial projections, Costa Vida's FDD, a draft or executed franchise agreement, site information (lease letter of intent or signed lease), and personal identification. For SBA loans, additional forms are required. Crestmont Capital's team will walk you through exactly what is needed for your specific application.
Obtaining franchise financing with bad credit (below 600) for a project of this size is challenging, though not impossible. Crestmont Capital's bad credit business loans team can evaluate your overall financial picture, including net worth, assets, and business experience, to identify potential paths forward. In some cases, adding a co-borrower with stronger credit or providing additional collateral can help offset credit score concerns. The best approach is to apply and let our specialists assess your specific situation.
Securing a Costa Vida franchise loan is a significant undertaking, but with the right lender and the right financing structure, it is entirely achievable. The costa vida franchise cost of $674,500 to $1,340,000 may seem daunting at first, but thousands of franchise investors have successfully used a combination of equity, SBA loans, equipment financing, and working capital products to open restaurants exactly like this one. The key is starting the process early, getting pre-qualified with a lender experienced in restaurant franchise financing, and building a capital structure that leaves you enough cash flow to grow the business once you open.
Crestmont Capital's team of franchise financing specialists is ready to help you explore your options, structure your loan application, and move quickly when your franchise opportunity is ready to go. Apply today and take the first step toward owning your Costa Vida Fresh Mexican Grill franchise.
Disclaimer: The information provided in this article is for general educational purposes only and is not financial, legal, or tax advice. Funding terms, qualifications, and product availability may vary and are subject to change without notice. Crestmont Capital does not guarantee approval, rates, or specific outcomes. For personalized information about your business funding options, contact our team directly.