Does Bananas Smoothies Frozen Yogurt cooperate with Small Business Administration approved lenders?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not offer direct or indirect financing to you nor do We or any of Our affiliates receive any direct or indirect payments or other consideration from any person for the placement of financing with a lender, although we cooperate with the Small Business Administration approved lenders and will work with You to help You process SBA funding through any approved lender. We do not customarily guarantee any of your notes, leases, or other obligations to third parties although our affiliate has, from time to time, given certain limited guaranties on leases (but there is no obligation to do so). In certain limited situations, our affiliate may provide a limited guaranty of your lease with a third party, if you have acceptable credit and it is the only way to obtain an exceptional location.
Source: Item 10 — FINANCING (FDD pages 37–38)
What This Means (2025 FDD)
According to Bananas Smoothies Frozen Yogurt's 2025 Franchise Disclosure Document, Bananas Smoothies Frozen Yogurt does not offer direct or indirect financing to franchisees. However, Bananas Smoothies Frozen Yogurt states that they cooperate with Small Business Administration (SBA) approved lenders and will assist prospective franchisees in processing SBA funding through an approved lender.
Bananas Smoothies Frozen Yogurt also clarifies that they do not typically guarantee a franchisee's notes, leases, or other obligations to third parties. There is no obligation for their affiliate to provide guaranties on leases. However, in limited situations, their affiliate may provide a limited guaranty of a franchisee's lease with a third party if the franchisee has acceptable credit and it is the only way to secure an exceptional location.
The FDD also notes that a franchisee's ability to obtain financing from third parties depends on various factors, including their creditworthiness, the type of security they can offer, the policies of lending institutions, and the availability and cost of commercial credit. The document cautions that a franchisee may not be able to obtain a loan.