What are the benefits for Bananas Smoothies Frozen Yogurt franchisees who participate in the Beverage Program?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
specific marketing campaign.
An Approved Supplier of beverage products has agreed, subject to certain conditions, to pay our affiliate, Villa Management, rebates based on purchases from company-owned Green Leaf's and Bananas restaurants, as well as purchases from our Franchisees who choose to sell such supplier's beverage products exclusively. (Our affiliate has agreed to sell such supplier's products exclusively through December 26, 2026 with respect to company-owned restaurants.) Under this program, our Affiliate receives from this Approved Supplier: (1) rebate to be used for various marketing and promotional programs aggregating greater than $5.00 per gallon of postmix products, of which we will remit to you $1.59 per gallon with respect to your purchases, if you participate; (2) a price protection rebate equal to the amount, if any, by which gross weighted average national account prices increase by a certain percentage over the prior year; (3) a $2,500 vendor rebate for each new restaurant that sells the designated vendor's beverage products exclusively and remains open for a contractually agreed period, which rebate we will use in our discretion for marketing and grand opening support of your restaurant; (4) growth incentive rebate based upon a per gallon post mix product purchases by the entire company-owned and franchise system and per case of packaged beverage products that are purchased by the entire company owned and franchise system and (5) rebates of $2.25 per case of packaged beverage products, which are to be used for certain marketing programs. Except as described above, Our Franchisees which participate in the Beverage Program will be able to receive beverage equipment on loan and at a per gallon cost from the supplier for the term of their
franchise or duration of the Beverage Agreement, whichever is first to occur. Franchisees will not receive a portion of the rebates described in Nos. (2) and (5) above, because the amounts involved, if received at all, are so de minimis, that the accounting and calculation involved would be extremely difficult and costly. In addition, the rebates described in No (5), above, will not be shared with our Franchisees, but will be used in their entirety to cover system-wide marketing expenditures. As noted above, under the Franchise Agreement, you have no contractual right to any of these rebates, and we m
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, franchisees who participate in the Beverage Program can receive several benefits through an agreement with an Approved Supplier. This supplier will pay Villa Management, a Bananas Smoothies Frozen Yogurt affiliate, rebates based on purchases from company-owned Green Leaf's and Bananas restaurants, as well as purchases from franchisees who exclusively sell the supplier's beverage products. Villa Management has agreed to exclusively sell the supplier's products through December 26, 2026, in company-owned restaurants.
Specifically, if a Bananas Smoothies Frozen Yogurt franchisee participates in the Beverage Program, they may receive $1.59 per gallon with respect to their purchases from a rebate used for marketing and promotional programs aggregating greater than $5.00 per gallon of postmix products. Additionally, franchisees may receive beverage equipment on loan and at a per gallon cost from the supplier for the term of their franchise or the duration of the Beverage Agreement, whichever comes first.
However, Bananas Smoothies Frozen Yogurt franchisees will not receive a portion of the price protection rebate or rebates of $2.25 per case of packaged beverage products. The FDD states that the accounting and calculation involved would be extremely difficult and costly because the amounts involved, if received at all, are so de minimis. The rebates of $2.25 per case of packaged beverage products will be used in their entirety to cover system-wide marketing expenditures. The franchisor retains the right to use these rebates at their discretion, and franchisees have no contractual right to them.