Does Bananas Smoothies Frozen Yogurt or its affiliates receive payments for placing financing with a lender?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not offer direct or indirect financing to you nor do We or any of Our affiliates receive any direct or indirect payments or other consideration from any person for the placement of financing with a lender, although we cooperate with the Small Business Administration approved lenders and will work with You to help You process SBA funding through any approved lender. We do not customarily guarantee any of your notes, leases, or other obligations to third parties although our affiliate has, from time to time, given certain limited guaranties on leases (but there is no obligation to do so). In certain limited situations, our affiliate may provide a limited guaranty of your lease with a third party, if you have acceptable credit and it is the only way to obtain an exceptional location.
Source: Item 10 — FINANCING (FDD pages 37–38)
What This Means (2025 FDD)
According to Bananas Smoothies Frozen Yogurt's 2025 Franchise Disclosure Document, neither Bananas Smoothies Frozen Yogurt nor its affiliates receive direct or indirect payments for placing financing with a lender. However, Bananas Smoothies Frozen Yogurt states that they cooperate with Small Business Administration (SBA) approved lenders and will assist prospective franchisees in processing SBA funding through an approved lender.
While Bananas Smoothies Frozen Yogurt does not typically guarantee a franchisee's notes, leases, or other obligations to third parties, an affiliate may, in certain limited situations, provide a limited guaranty of the franchisee's lease with a third party. This is contingent on the franchisee having acceptable credit and if it is the only way to secure an exceptional location.
Prospective franchisees should note that obtaining financing from third parties will depend on factors such as their creditworthiness, the type of security they can offer, the policies of lending institutions, and the general availability and cost of commercial credit. The FDD indicates that franchisees may not be able to obtain a loan.