What consideration is given for the Bananas Smoothies Frozen Yogurt Sublease?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
Sublease, including any trustee in bankruptcy, shall sell, assign, transfer, convey, give away, pledge, mortgage or otherwise encumber any interest in this franchise without the prior written consent of Sublessor and provided that Sublessee shall first have complied with the conditions for tran
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt FDD, a sublessor cannot unreasonably withhold consent to a transfer of any interest in the sublease. However, prior to the transfer, the sublessee must pay the sublessor a transfer fee of $10,000.00 before the sublessor grants approval.
This clause protects the franchisee by preventing the franchisor (as sublessor) from arbitrarily denying a sublease transfer. However, the franchisee needs to be aware of the $10,000 transfer fee, which could impact the financial viability of transferring the sublease. This fee is in addition to any other costs associated with the transfer, such as legal or administrative expenses.
It is important for a prospective Bananas Smoothies Frozen Yogurt franchisee to fully understand the conditions under which a sublease can be transferred and to factor in the $10,000 transfer fee when considering the possibility of transferring the sublease in the future. Franchisees should also clarify what constitutes "unreasonable withholding of consent" to avoid potential disputes with the franchisor.