What does the Additional Funds expenditure cover for a Bananas Smoothies Frozen Yogurt mall location?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 11 You may need to employ an attorney, accountant, construction permit expeditor, architect or other consultants.
- 12 You will need to support ongoing expenses, such as payroll and utilities to the extent that these costs are not covered by sales revenue. New businesses often generate negative cash flow.
- 13 You must purchase or lease a computer, and an electronic Point of Sale system and we do specify the brand or model. You may not use any hardware and/or software in the operation of the restaurant without the Franchisor's prior approval, which approval will not be unreasonably withheld. (See Item 11)
- 14 Our current estimates of your initial investment for the franchised businesses offered are set forth above. The various schedules presented illustrate your initial investment if you acquire the franchised businesses separately or in combination. The actual amounts you incur may be higher, however, if particular circumstances apply to the location of your Franchised Business or to your region of the country.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 19–31)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt FDD, the "Additional Funds" expenditure covers several costs associated with starting the franchise. These include potential expenses for attorneys, accountants, construction permit expediters, architects, or other consultants that the franchisee may need to employ. Additionally, these funds are intended to cover ongoing expenses like payroll and utilities, especially during the initial phase when sales revenue might not be sufficient to cover these costs.
Bananas Smoothies Frozen Yogurt estimates that the initial phase of business lasts for three months following the completion of construction. The franchisor relied on its past experience in the franchised restaurant industry with both franchisee and company-owned restaurants when preparing these figures. The FDD notes that the actual amounts a franchisee incurs may be higher than the estimates provided, particularly if the location has specific circumstances such as being located within an airport, casino, transportation area, or some other non-traditional location.
Prospective Bananas Smoothies Frozen Yogurt franchisees should carefully review these figures with a business advisor, accountant, or attorney before making any decision to purchase a franchise. The FDD explicitly states that Bananas Smoothies Frozen Yogurt does not offer any financing for the initial investment, and the availability and terms of financing with third-party lenders will depend on factors such as the franchisee's creditworthiness and the lending institutions' policies.