How are the advertising programs directed for the Bananas Smoothies Frozen Yogurt National Advertising Fund?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that Franchisor has established a National Advertising Fund (the "Fund") for the System.
Franchisee agrees that Franchisee shall make contributions to the Fund as required under Paragraph 10.02 hereof and file reports weekly by facsimile, electronic mail or such other system or system as the Franchisor may designate on a system wide basis (or we may require that you send the reports manually), and that the Fund shall be maintained and administered by Franchisor or its designee, as follows:
- A.
Franchisor shall direct all advertising programs with sole discretion over the creative concepts, materials and media used in such programs and the placement and allocation thereof.
Franchisee agrees and acknowledges that the Fund is intended to maximize general public recognition and acceptance of the Marks for the benefit of the System and that Franchisor and its designees undertake no obligation in administering the Fund to make expenditures for Franchisee which are equivalent or proportionate to its contribution, or to insure that any particular franchisee benefits directly or pro rata from the placement of advertising.
- B.
Franchisee agrees that the Fund may be used to meet any and all costs of maintaining, administering, directing and preparing advertising (including, without limitation, the cost of preparing and conducting television, radio, magazine and newspaper advertising campaigns and other public relations activities; employing advertising agencies to assist therein; and providing promotional brochures and other marketing materials for distribution by franchisees in the System).
All sums paid by Franchisee to the Fund
shall be maintained in a separate account from the other funds of Franchisor and shall not be used to defray any of Franchisor's general operating expenses, except for such reasonable administrative costs and overhead, if any, as Franchisor may incur in activities reasonably related to the administration or direction of the Fund and advertising programs including, without limitation, conducting market research, preparing marketing and advertising materials, and collecting and accounting for assessments for the Fund.
- C. A financial review of the Fund's operation shall be prepared annually and shall be made available to Franchisee upon request.
- 16.04 Advertising Standards. All advertising by Franchisee in any medium shall be conducted in a dignified manner and shall conform to the standards and requirements in the Confidential Operating Manual. Franchisee shall submit to Franchisor for Franchisor's prior approval (except with respect to prices to be charged), samples of all advertising and promotional plans and materials that Franchisee desires to use and that have not been prepared or previously approved by Franchisor. If written disapproval thereof is not received by Franchisee within ten (10) days from the date of receipt by Franchisor of such materials, Franchisor shall be deemed to have given the required approval.
- 16.05 Advertising and Sales Promotion Programs. Franchisor may from time to time develop and administer advertising and sales promotion programs designed to promote and enhance the collective success of all Franchisor's Restaurants operating under Franchisor's System. Franchisee shall participate in all such advertising and sales promotion programs in accordance with the terms and conditions established by Franchisor for each program. In all aspects of these programs, including, without limitation, the type, quantity, timing, placement and choice of media, market areas, and advertising agencies, the standards and specifications established by Franchisor shall be final and binding upon Franchisee.
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 franchisor has sole discretion over the advertising programs. Specifically, Everything Yogurt Brands, LLC directs all advertising programs for the National Advertising Fund. This includes complete control over the creative concepts, the advertising materials used, the media utilized, and the placement and allocation of these advertising resources.
Bananas Smoothies Frozen Yogurt franchisees must acknowledge that the purpose of the National Advertising Fund is to increase public recognition and acceptance of the brand's trademarks for the benefit of the entire system. Everything Yogurt Brands, LLC does not guarantee that advertising expenditures will be directly equivalent or proportionate to an individual franchisee's contribution to the fund. Nor does it ensure that any specific franchisee will directly or proportionally benefit from the advertising placements made by the franchisor.
The funds may cover all costs related to maintaining, administering, directing, and preparing advertising campaigns. This includes television, radio, magazine, and newspaper advertising, as well as public relations activities. The fund can also be used to employ advertising agencies and provide promotional materials for franchisees. A financial review of the fund's operation will be prepared annually and made available to franchisees upon request.
All advertising by Bananas Smoothies Frozen Yogurt franchisees must be conducted in a dignified manner and adhere to the standards outlined in the Confidential Operating Manual. Franchisees must submit all advertising and promotional plans and materials to the franchisor for prior approval, except for pricing. If the franchisee does not receive written disapproval within ten days of the franchisor receiving the materials, approval is considered granted. The franchisor may also develop and administer advertising and sales promotion programs to promote the collective success of all restaurants operating under the Bananas Smoothies Frozen Yogurt system, and franchisee participation is mandatory.