Is the Development Fee for Bananas Smoothies Frozen Yogurt refundable?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
Development Area;
- (c) grant Developer an extension under the Development Schedule for such time period as Franchisor may specify at its sole option for a non-refundable extension fee equal to the balance of the Franchise Fees for the number of EYB Concepts that are to be opened and operated under the Development Schedule but are not yet open; or
(d) reduce the Development Area and the Development Schedule to a size and magnitude that Franchisor estimates Developer's capable of operating otherwise in accordance with this Agreement.
4. DEVELOPMENT FEE.
- 4.1 Amount and Consideration. When Developer signs this Agreement, Developer agrees to pay to us a development fee (the "Development Fee"). The Development Fee depends on the number of EYB Concepts to be opened and what EYB Concepts are to be developed. For example, if Developer were to develop 2 Green Leaf's Beyond Great Salads restaurants (in the Continental U.S.), then the total Development Fee is $50,000 [$25,000 for the first location + $25,000 for the second location]. Thus, the upfront Development Fee paid when signing this Agreement is $37,500 ($25,000 for the first restaurant and $12,500 for the second restaurant (1/2 of $25,000). The Development Fee constitutes payment only for the rights we grant you under this Agreement. The Development Fee is non-refundable and is fully earned by Franchisor on receipt.
- 4.2 Franchise Fees. At the time of executing the franchise agreement for each EYB Concept de
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt Franchise Disclosure Document, the Development Fee is generally non-refundable. Specifically, the FDD states that the Development Fee is fully earned by Bananas Smoothies Frozen Yogurt upon receipt. This fee compensates Bananas Smoothies Frozen Yogurt for granting the developer rights under the Area Development Agreement.
For example, if a developer plans to open two Green Leaf's Beyond Great Salads restaurants in the Continental U.S., the total Development Fee would be $50,000 ($25,000 for each location). The initial payment due upon signing the Area Development Agreement is $37,500, covering the full fee for the first location and half for the second. The remaining balance of $12,500 for the second restaurant is due when the franchise agreement for that location is executed.
It's important to note that these fees are non-refundable, regardless of whether the developer successfully opens all planned locations. This policy is relatively standard in the franchise industry, as the initial fees compensate the franchisor for the time, resources, and lost opportunity in awarding development rights to a specific individual or group. Prospective Bananas Smoothies Frozen Yogurt developers should carefully consider their ability to meet the development schedule and financial obligations before entering into an Area Development Agreement.