What costs are covered by the Bananas Smoothies Frozen Yogurt National Advertising Fund?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
s or directors will not contribute to the Fund.
The Fund will be used to meet the costs of maintaining, administering, directing and preparing advertising (including, without limitation, the cost of preparing and conducting television, radio, magazine and newspaper campaigns and other public relations activities; advertising agencies to assist; and providing promotional brochures and other marketing materials for you to distribute). All of the money paid by you will be maintained in a separate account from our other funds and will not be used to defray our general operating expenses. The money may be used for reasonable administrative costs and overhead that we may incur in administering or directing the Fund and advertising programs including conducting market research, preparing marketing and advertising materials and collecting and accounting for assessments for the Fund.
We will prepare an annual accounting of the Fund which will be available to you on request. We specifically reserve the right to require any advertising cooperatives to be formed, changed, dissolved or merged. No part of the advertising funds are devoted to the solicitation of franchisees. Any funds which are left in the Fund at the end of the fiscal year are carried into the next year.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 38–43)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt FDD, the National Advertising Fund is used to cover various advertising and marketing expenses. These include the costs of maintaining, administering, directing, and preparing advertising campaigns across different media such as television, radio, magazines, and newspapers. The fund also covers public relations activities, fees for advertising agencies, and the creation and distribution of promotional brochures and other marketing materials for franchisees.
Bananas Smoothies Frozen Yogurt details that the money in the fund is kept separate from their general operating funds and will not be used for those expenses. However, the funds may be used for reasonable administrative costs and overhead related to managing the fund and advertising programs. This includes conducting market research, preparing marketing and advertising materials, and managing the collection and accounting of franchisee contributions to the fund.
For the fiscal year ending December 29, 2024, Bananas Smoothies Frozen Yogurt spent approximately $51,351 from the National Advertising Fund. These expenses were allocated to national promotions (15%), media (20%), research and development (50%), and miscellaneous marketing (15%). This breakdown gives prospective franchisees an idea of how the advertising dollars are distributed across different marketing activities to promote the Bananas Smoothies Frozen Yogurt brand.