Does the Bananas Smoothies Frozen Yogurt agreement intend to make either party a general agent of the other?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
Nothing contained in this Agreement, or arising from the conduct of the parties hereunder, is intended to make either party a general or special agent, joint venturer, partner or employee of the other for any purpose whatsoever. Franchisee must conspicuously identify itself in all dealings with customers, lessors, contractors, suppliers, public officials, employees and others as the owner of the Restaurant and must place such other notices of independent ownership on such forms, business cards, stationery, advertising and other materials as we may require from time to time.
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 agreement explicitly states that neither the franchisor nor the franchisee is intended to be a general or special agent, joint venturer, partner, or employee of the other for any purpose. This clarifies that the franchisee operates as an independent entity.
This provision means that franchisees are responsible for their own business operations, including dealings with customers, lessors, contractors, suppliers, public officials, and employees. The franchisee must also conspicuously identify itself as the owner of the restaurant in all interactions and on all materials, reinforcing the independent nature of the business.
This type of clause is standard in franchise agreements to protect the franchisor from being held liable for the franchisee's actions and debts. It also ensures that the franchisee understands they are operating their own business and are responsible for its success or failure. This independence allows the franchisee to manage their business according to the franchisor's system, but without creating a legal partnership or agency relationship.