What are the criteria that define an 'Urban Retail Center' for a Bananas Smoothies Frozen Yogurt franchise?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
- B.
An Urban Retail Center shall be deemed to mean: (i) an enclosed area specially designed to attract tourists which features food-serving businesses, (ii) located in the central business district of a city (or other relevant political subdivision) with a population of at least two hundred fifty thousand (250,000), (iii) in which area are located at least fifty (50) retail establishments, and (iv) in which there is in excess of one hundred thousand (100,000) square feet of gross leasable retail space.
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt FDD, an Urban Retail Center has specific criteria. It must be an enclosed area designed to attract tourists and feature food-serving businesses. The location must be in the central business district of a city (or relevant political subdivision) with a population of at least 250,000 people. Additionally, the area must have at least 50 retail establishments and exceed 100,000 square feet of gross leasable retail space.
These criteria are important for franchisees because the location of their Bananas Smoothies Frozen Yogurt restaurant affects advertising expenditure requirements. If a restaurant is located in an Urban Retail Center, among other specified locations, the franchisee does not have a Local Advertising Expenditure requirement due to the existence of a National Advertising Fund.
Conversely, if the Bananas Smoothies Frozen Yogurt restaurant is not in an Urban Retail Center (or other specified locations), the franchisee must spend 3% of gross sales each calendar quarter on local advertising. Furthermore, they must spend a minimum of $3,000 during the first 30 days of operation on grand opening advertising, including purchasing a grand opening media kit from Bananas Smoothies Frozen Yogurt or its designee. Understanding these location-based advertising requirements is crucial for budgeting and financial planning.