What is the definition of an 'Urban Retail Center' for a Bananas Smoothies Frozen Yogurt franchise?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor makes no representations concerning the extent or effectiveness of such advertising and promotion.
- 16.02 Definitions. As used herein, the terms "Regional Shopping Mall" "Urban Retail Center", "Major Office Building", "Institutional Feeding Facility" and "Airport" shall have the following meanings:
- A. A Regional Shopping Mall shall be deemed to mean a retail shopping center or other concentration of retail stores which has a contiguous area, whether or not enclosed, in which there is in excess of five hundred thousand (500,000) square feet of gross leasable retail space.
- B.
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt Franchise Disclosure Document, an Urban Retail Center has a specific meaning that affects advertising expenditure requirements. It is defined as an enclosed area designed to attract tourists with food-serving businesses. This area must be located in the central business district of a city (or relevant political subdivision) with a population of at least 250,000. Furthermore, the Urban Retail Center must house at least 50 retail establishments and have over 100,000 square feet of gross leasable retail space.
This definition is important because it determines whether a Bananas Smoothies Frozen Yogurt franchisee must contribute to a Local Advertising Expenditure. If the restaurant is located in an Urban Retail Center, the franchisee is exempt from the local advertising expenditure, as there is a National Advertising Fund. However, if the restaurant is not in an Urban Retail Center (or a Regional Shopping Mall, Major Office Building, Airport, or Institutional Feeding Facility), the franchisee must spend 3% of gross sales each calendar quarter on local advertising.
Additionally, if a Bananas Smoothies Frozen Yogurt restaurant is not located in one of the specified locations, the franchisee must spend a minimum of $3,000 during the first 30 days of operation on grand opening advertising, which includes purchasing a grand opening media kit from the franchisor. The franchisor will advise on how to spend these grand opening advertising funds, but makes no guarantees regarding the effectiveness of the advertising. Therefore, the location of the Bananas Smoothies Frozen Yogurt restaurant significantly impacts the franchisee's advertising obligations and costs.