Does Bananas Smoothies Frozen Yogurt attempt to negotiate purchase agreements with suppliers for all of its brands?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
We attempt to negotiate purchase agreements with suppliers (including price terms) for the benefit of all Green Leaf's Beyond Great Salads, Bananas Smoothies & Frozen Yogurt, Everything Yogurt, Gretel's Pretzels, South Philly Steaks & Fries, and South Philly Cheesesteaks & Fries restaurants, including those owned by franchisees; however, we (or our affiliates) have the right to retain 100% of all discounts, rebates, commissions or other consideration paid by Approved Suppliers and to use them for whatever purposes we elect and you may claim no rights thereto. The Approved Suppliers may pay us an administrative fee which averages approximately 7% of sales by Approved Suppliers to the Franchised Business. This fee is based on sales to the Franchised Businesses in order to reimburse us for our costs incurred in connection with the administration of the distribution system and product liability requirements. We do not provide material benefits (e.g., renewal or additional franchises) to a franchisee based on his use of designated or Approved Suppliers.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 31–36)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt Franchise Disclosure Document, the franchisor attempts to negotiate purchase agreements with suppliers for the benefit of multiple brands. These brands include Green Leaf's Beyond Great Salads, Bananas Smoothies & Frozen Yogurt, Everything Yogurt, Gretel's Pretzels, South Philly Steaks & Fries, and South Philly Cheesesteaks & Fries.
This negotiation aims to secure favorable terms, including pricing, for all restaurants operating under these brands, including those owned by franchisees. However, Bananas Smoothies Frozen Yogurt retains the right to keep 100% of any discounts, rebates, commissions, or other considerations received from these approved suppliers. These funds can be used at the franchisor's discretion, and franchisees have no claim to them.
Approved suppliers may also pay Bananas Smoothies Frozen Yogurt an administrative fee, which averages approximately 7% of sales by the approved suppliers to the franchised businesses. This fee is intended to reimburse the franchisor for costs related to administering the distribution system and meeting product liability requirements. The FDD states that Bananas Smoothies Frozen Yogurt does not provide material benefits to franchisees based on their use of designated or approved suppliers.