What is a condition for a Bananas Smoothies Frozen Yogurt developer to transfer the agreement to a business entity?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding Paragraph 11.2 of this Section, if Developer is in full compliance with this Agreement, Developer may transfer this Agreement to a Business Entity that conducts no business other than Developer's EYB Concept businesses and so long as each shareholder, member, partner or any other ownership interest, shall jointly and severally guarantee the performance and full payment of the obligations under this Agreement. Furthermore, Developer may not transfer any ownership interests to anyone who does not meet Franchisor's approval. The organizational or governing documents of the business organization must recite that the issuance and transfer of any
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt FDD, a developer may transfer the Area Development Agreement to a business entity if they are in full compliance with the agreement. The business entity must conduct no business other than the developer's Everything Yogurt Brands (EYB) Concept businesses.
Additionally, each shareholder, member, partner, or any other ownership interest holder must jointly and severally guarantee the performance and full payment of the obligations under the Area Development Agreement. The developer cannot transfer any ownership interests to anyone who does not meet Bananas Smoothies Frozen Yogurt's approval.
Finally, the organizational or governing documents of the business organization must state that the issuance and transfer of any ownership interests in the business organization are restricted by the terms of the Area Development Agreement, are subject to Bananas Smoothies Frozen Yogurt's approval, and all certificates or other documents representing ownership interests in the business organization must bear a legend referring to the restriction of this Agreement.