What is the consequence of a Bananas Smoothies Frozen Yogurt developer's unauthorized use of the Marks?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
Developer's right to use the Marks is derived solely from this Agreement and the Franchise Agreements and limited to Developer's operation of the EYB Concept at the Sites pursuant to and in compliance with the Franchise Agreements and all System Standards Franchisor prescribes from time to time during term of the Franchise Agreements.
Developer's unauthorized use of the Marks will be a breach of this Agreement and an infringement of our rights in and to the Marks.
Developer acknowledges and agrees that Developer's usage of the Marks and any goodwill established by such use will be exclusively for Franchisor's benefit and that neither this Agreement nor the Franchise Agreements confer any goodwill or other interests in the Marks upon Developer (other than the right to operate the EYB Concept in compliance with the Franchise Agreements).
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt FDD, a developer's right to use the brand's marks, such as the logos and trademarks, is strictly derived from the Area Development Agreement and Franchise Agreements. This right is specifically limited to the operation of an EYB Concept (Everything Yogurt Brands concept) at approved sites, and it must comply with all system standards set by Bananas Smoothies Frozen Yogurt.
Any unauthorized use of the marks by a developer constitutes a breach of the Area Development Agreement. It also infringes upon Bananas Smoothies Frozen Yogurt's rights to those marks. This means that developers cannot use the marks in ways not explicitly permitted by the franchise agreement, such as using them as part of a corporate name or in conjunction with unauthorized products or services.
Bananas Smoothies Frozen Yogurt emphasizes that all goodwill associated with the use of the marks belongs exclusively to the franchisor. Neither the Area Development Agreement nor the Franchise Agreements grant the developer any ownership or interest in the marks, other than the right to operate the EYB Concept in compliance with the agreements. This ensures that the brand maintains control over its identity and reputation, and it prevents developers from claiming any proprietary rights to the brand's trademarks or goodwill.