What business risks are involved in investing in a Bananas Smoothies Frozen Yogurt franchise?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) that an investment in EYB Concepts involves business risks and that the success of the venture is largely dependent upon your business abilities and efforts;
Developer acknowledges and agrees that we may require Developer to use a name for the EYB Concept other than Green Leaf's Beyond Great Salads or Bananas Smoothies & Frozen Yogurt, in which case we may require Developer to use the name "The Market By Villa". Franchisor has the sole right to use one or more additional or substitute names and proprietary marks other than Green Leaf's Beyond Great Salads or Bananas Smoothies & Frozen Yogurt and Developer agrees to make such changes, substitutes or additions as we direct, in our sole discretion and at Developer's sole expense.
- 3.4 Effect of Failure. Strict Compliance with the Development Schedule is the essence of this Agreement. If Developer does not timely meet the Minimum Development Quota as of the end of any Development Period shown on the Development Schedule, Developer will be in default of Developer's obligations under this Agreement. If such a default occurs, it will constitute a material breach of this Agreement and Franchisor may then, in its sole discretion, elect to:
- (a) terminate this Agreement;
- (b) have the right to operate (directly or through affiliates) or grant franchises for the operation of Green Leaf's Restaurants within the Development Area;
- (c) grant Developer an extension under the Development Schedule for such time period as Franchisor may specify at its sole option for a non-refundable extension fee equal to the balance of the Franchise Fees for the number of EYB Concepts that are to be opened and operated under the Development Schedule but are not yet open; or
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 FDD, investing in a Bananas Smoothies Frozen Yogurt franchise involves inherent business risks, similar to any other business venture. The success of the franchise largely depends on the franchisee's own business abilities and efforts. This means that prospective franchisees should carefully assess their own capabilities and dedication before investing.
For developers entering into an area development agreement with Bananas Smoothies Frozen Yogurt, failing to meet the minimum development quota within the agreed-upon development schedule constitutes a material breach of the agreement. In such cases, Everything Yogurt Brands, LLC, as the franchisor, has the discretion to terminate the agreement, operate or grant franchises to others within the development area, offer an extension for a non-refundable fee equal to the remaining franchise fees for the unfulfilled quota, or reduce the development area and schedule to a manageable size. This highlights the importance of a realistic development plan and the financial capacity to meet the agreed-upon schedule.
Furthermore, the developer acknowledges that Everything Yogurt Brands, LLC may require the use of a different name for the EYB Concept, such as "The Market By Villa," instead of Green Leaf's Beyond Great Salads or Bananas Smoothies & Frozen Yogurt. The franchisor retains the sole right to modify or substitute names and proprietary marks at its discretion, and the developer is responsible for implementing these changes at their own expense. This underscores the potential for changes in branding and the associated costs that a franchisee must be prepared to handle.