What were the advertising fund expenses for Bananas Smoothies Frozen Yogurt in 2024?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
s) Due to affiliates Total current liabilities | $ | 9,399 191,491 9,993 45,584 256,467 | $ 11,405 171,722 13,583 10,443 207,153 | | Long-term liabilities: Deferred revenue, net of current (opened stores) Total liabilities | | 13,823 270,290 | 23,816 230,969 | | Commitments and contingencies (Notes 1, 5 and 7) | | | | | Members' equity | | 116,716 | 353,015 | | TOTAL LIABILITIES AND MEMBERS' EQUITY | $ | 387,006 | $ 583,984 |
(A Limited Liability Company) STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 29, 2024, DECEMBER 31, 2023, AND DECEMBER 25, 2022
| 2024 | 2023 | 2022 | ||||
|---|---|---|---|---|---|---|
| Revenues: | ||||||
| Royalties | $ | 589,898 | $ | 643,409 | $ | 677,140 |
| Advertising fund revenues | 49,793 | 60,608 | 71,085 | |||
| Franchise fees and transfer fees | 13,583 | _ | 13,584 | _ | 15,527 | |
| Total revenues | 653,274 | _ | 717,601 | _ | 763,752 | |
| Operating expenses: | ||||||
| Administration and management fe |
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt Franchise Disclosure Document, the advertising fund expenses for 2024 were $51,351. This figure represents the total amount Bananas Smoothies Frozen Yogurt spent on advertising and promotional activities during that year using the advertising fund. These expenses are directly related to the advertising fees collected from franchisees, which are intended to support marketing efforts for the benefit of the entire franchise system.
Understanding the advertising fund expenses is crucial for prospective franchisees as it provides insight into how Bananas Smoothies Frozen Yogurt manages and allocates the advertising fees collected. The advertising fund is maintained to support advertising and promotional programs for the franchise units. The company recognizes revenues and expenses related to the advertising fund on a gross basis, meaning they record the full amount of both the income and expenses.
Franchisees contribute up to 1% of their sales towards this advertising fund. If the advertising fund fees exceed the expenses in a reporting period, the company accrues advertising costs up to the amount of advertising fund revenues recognized. This mechanism ensures that the advertising fund is primarily used for its intended purpose, which is to promote the Bananas Smoothies Frozen Yogurt brand and support its franchisees through marketing initiatives.
Reviewing these expenses in relation to advertising fund revenues can help potential franchisees assess the efficiency and effectiveness of Bananas Smoothies Frozen Yogurt's advertising strategies. It's also worth comparing these figures with previous years to identify trends and assess the franchisor's commitment to marketing support.