Does Bananas Smoothies Frozen Yogurt's acceptance of a site guarantee profitability or success?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor agrees to exert commercially reasonable efforts to notify you within 30 days after Franchisor has received the complete site report and other materials Franchisor has requested.
- 5.4 Effect of Acceptance. Franchisor's acceptance of the Site (including its location, appearance and size) indicates only that Franchisor believes it falls within the acceptable criteria Franchisor has established at that time.
Developer acknowledges and agrees that:
(a) Franchisor's acceptance of the Site does not imply, assure, guaranty, warrant or predict profitability or success, express or implied;
(b) application of criteria that have been effective with respect to other Sites may not be predictive of the potential for all Sites and that, subsequent to Franchisor's acceptance of a Site, demographic and/or economic factors included in, or excluding from, Franchisor's criteria could change, thereby altering the potential of a Site;
(c) the uncertainty and instability of such criteria are beyond Franchisor's control and Franchisor is not responsible for the failure of a Site approved by Franchisor to meet expectations as to potential revenue or operational criteria; and
(d) Developer's acceptance of a franchise for the operation of an EYB Concept at a site Developer proposes is based upon your own independent investigation of the suitability of that location and that Site even though we may provide guidance and assistance to you in selecting the Site for your EYB Concept.
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to Bananas Smoothies Frozen Yogurt's 2025 Franchise Disclosure Document, the franchisor's acceptance of a site does not guarantee profitability or success. While Bananas Smoothies Frozen Yogurt will exert commercially reasonable efforts to notify a developer within 30 days after receiving a complete site report and other requested materials, their acceptance of a site only indicates that they believe it meets their acceptable criteria at that time.
The FDD emphasizes that the application of criteria effective for other locations may not accurately predict the potential of all sites. Demographic and economic factors can change after site acceptance, altering a site's potential. Bananas Smoothies Frozen Yogurt explicitly states they are not responsible if an approved site fails to meet expectations regarding revenue or operational criteria.
Furthermore, the document clarifies that a developer's decision to operate a Bananas Smoothies Frozen Yogurt franchise at a proposed site should be based on their own independent investigation of the location's suitability. While Bananas Smoothies Frozen Yogurt may offer guidance and assistance in site selection, the ultimate responsibility for assessing the site's potential rests with the developer. This underscores the importance of conducting thorough due diligence and not solely relying on the franchisor's approval when choosing a location.