What is the definition of 'Competitive Business' as it relates to Bananas Smoothies Frozen Yogurt franchises?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.3 Competitive Restrictions. Developer agrees and acknowledges that Franchisor would be unable to protect the Confidential Information against unauthorized use or disclosure and would be unable to encourage a free exchange of ideas and information among EYB Concepts if owners of franchised EYB Concepts were permitted to hold any interest in any business or facility owning, operating, managing franchising or licensing, any concept featuring, or selling, in whole or in part, the same or similar types of food, beverages, smoothies as our franchised EYB Concepts, including but not limited to Green Leaf's Beyond Great Salads (Pick N Mix and all types of Salads, Wrappers, Paninis), and Bananas Smoothies & Frozen Yogurt (Smoothies, Frosties, Yogurt), and The Market By Villa, including catering service or food service facility as well as franchised EYB Concepts and other goods as any of its menu items (other than an EYB Concept under a franchise agreement with us) (a "**Competitive Business
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, a 'Competitive Business' for Bananas Smoothies Frozen Yogurt is defined as any business or facility that owns, operates, manages, franchises, or licenses a concept featuring or selling the same or similar types of food, beverages, or smoothies as franchised EYB Concepts. This includes, but is not limited to, Green Leaf's Beyond Great Salads (Pick N Mix and all types of Salads, Wrappers, Paninis), and Bananas Smoothies & Frozen Yogurt (Smoothies, Frosties, Yogurt), and The Market By Villa, including catering service or food service facility as well as franchised EYB Concepts and other goods as any of its menu items (other than an EYB Concept under a franchise agreement).
This definition has significant implications for prospective franchisees. It means that during the term of the Franchise Agreement, a franchisee cannot be involved in any capacity (owner, operator, employee, consultant, etc.) with a business that directly competes with Bananas Smoothies Frozen Yogurt, unless it's another franchise under the EYB Concepts umbrella. This restriction extends to owning an interest in any entity that grants franchises or licenses for competitive businesses.
The non-compete agreement ensures that franchisees are fully committed to the success of their Bananas Smoothies Frozen Yogurt franchise and do not divert resources or confidential information to competing ventures. This is a standard practice in franchising to protect the brand, trade secrets, and market share of the franchise system. Franchisees should carefully consider this restriction and ensure they are not currently involved in any conflicting business activities before signing the Franchise Agreement.