What is a Bananas Smoothies Frozen Yogurt developer's responsibility regarding site suitability investigation?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
Developer acknowledges and agrees that:
(a) Franchisor's acceptance of the Site does not imply, assure, guaranty, warrant or predict profitability or success, express or implied;
(b) application of criteria that have been effective with respect to other Sites may not be predictive of the potential for all Sites and that, subsequent to Franchisor's acceptance of a Site, demographic and/or economic factors included in, or excluding from, Franchisor's criteria could change, thereby altering the potential of a Site;
(c) the uncertainty and instability of such criteria are beyond Franchisor's control and Franchisor is not responsible for the failure of a Site approved by Franchisor to meet expectations as to potential revenue or operational criteria; and
(d) Developer's acceptance of a franchise for the operation of an EYB Concept at a site Developer proposes is based upon your own independent investigation of the suitability of that location and that Site even though we may provide guidance and assistance to you in selecting the Site for your EYB Concept.
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt FDD, while the franchisor may provide guidance and assistance in selecting a site for an EYB Concept, it is the developer's responsibility to conduct their own independent investigation regarding the suitability of the location. Bananas Smoothies Frozen Yogurt acceptance of a site only indicates that it falls within the acceptable criteria the franchisor has established at that time.
The FDD emphasizes that Bananas Smoothies Frozen Yogurt's acceptance of a site does not guarantee profitability or success. The effectiveness of site selection criteria used for other locations may not accurately predict the potential of all sites. Demographic and economic factors can change after site acceptance, impacting a site's potential.
The document makes it clear that the uncertainty and instability of site selection criteria are beyond Bananas Smoothies Frozen Yogurt's control, and they are not responsible if an approved site fails to meet expectations regarding revenue or operational criteria. Therefore, prospective Bananas Smoothies Frozen Yogurt developers should not rely solely on the franchisor's approval but should perform thorough due diligence to assess the location's viability.