For Bananas Smoothies Frozen Yogurt, what activities are prohibited under the post-term competitive restrictions?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
Developer agrees and acknowledges that Franchisor would be unable to protect the Confidential Information against unauthorized use or disclosure and would be unable to encourage a free exchange of ideas and information among EYB Concepts if owners of franchised EYB Concepts were permitted to hold any interest in any business or facility owning, operating, managing franchising or licensing, any concept featuring, or selling, in whole or in part, the same or similar types of food, beverages, smoothies as our franchised EYB Concepts, including but not limited to Green Leaf's Beyond Great Salads (Pick N Mix and all types of Salads, Wrappers, Paninis), and Bananas Smoothies & Frozen Yogurt (Smoothies, Frosties, Yogurt), and The Market By Villa, including catering service or food service facility as well as franchised EYB Concepts and other goods as any of its menu items (other than an EYB Concept under a franchise agreement with us) (a "Competitive Business"). Developer also acknowledges that Franchisor has entered into this Agreement with Developer in part in consideration of and in reliance on Developer's agreement to deal exclusively with Franchisor.
Therefore, you agree as follows:
(a) Noncompetition and Non-solicitation: During the term of this Agreement neither Developer nor any of Developer's Owners if Developer is a Business Entity (a "Restricted Person") will:
(i) engage in a Competitive Business or perform services for a Competitive Business, directly or indirectly, as a director, owner, proprietor, officer, manager, employee, consultant, representative, agent, independent contractor or otherwise, except under a franchise agreement with Franchisor or Franchisor's affiliates;
(ii) have any direct or indirect interest, as a disclosed or beneficial owner, in a Competitive Business, except under franchise agreements with Franchisor or Franchisor's affiliates;
(iii) have any direct or indirect interest, as a disclosed or beneficial owner, in any entity which is granted or is granting franchises or licenses to others to operate any Competitive Business, except EYB Concepts under franchise agreements with Franchisor or Franchisor's affiliates; or
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
I am unable to provide information on the post-term competitive restrictions for a Bananas Smoothies Frozen Yogurt franchise, according to the 2025 Franchise Disclosure Document. The provided excerpts discuss competitive restrictions during the term of the agreement, but do not specify what activities are prohibited after the franchise agreement ends.
Specifically, the FDD excerpts detail restrictions on engaging in or having an interest in a "Competitive Business" during the term of the agreement. A "Competitive Business" is defined as one featuring similar food, beverages, or smoothies to Bananas Smoothies & Frozen Yogurt. The excerpts also mention non-compete items such as smoothies, frosties, and yogurt.
To fully understand the post-term competitive restrictions, a prospective Bananas Smoothies Frozen Yogurt franchisee should ask the franchisor for details on the duration and scope of these restrictions. This includes what specific activities are prohibited, the geographic area covered, and any exceptions to the restrictions. This information is crucial for planning future business ventures after the franchise agreement expires.