What must the development schedule in a Bananas Smoothies Frozen Yogurt Successor Agreement reflect?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) At the expiration of the term of this Agreement, if Developer and Franchisor both determine that additional EYB Concepts should be developed in the Development Area, Franchisor will offer Developer the right to enter into a successor area development agreement (a "Successor Agreement") if Developer meets all of the following conditions:
- (i) Developer agrees to further develop the Development Area in accordance with the Development Schedule that Developer and Franchisor agree upon and is established in the Successor Agreement;
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt FDD, the development schedule in a Successor Agreement must reflect the further development of the Development Area, as agreed upon by both the Developer (franchisee) and Bananas Smoothies Frozen Yogurt. The franchisee must agree to this development schedule to be established in the Successor Agreement.
To obtain a Successor Agreement, the franchisee must meet several conditions, including agreeing to the Development Schedule, not being in default of any agreements with Bananas Smoothies Frozen Yogurt, signing the Successor Agreement, paying the required Development Fee, providing a general release of claims against the franchisor, and providing acceptable financial statements demonstrating sufficient working capital.
If the franchisee and Bananas Smoothies Frozen Yogurt determine that additional EYB Concepts should be developed in the Development Area, Bananas Smoothies Frozen Yogurt will offer the franchisee the right to enter into a Successor Agreement. However, if the franchisee does not meet these conditions, Bananas Smoothies Frozen Yogurt is not obligated to offer a Successor Agreement, and upon expiration of the original agreement, Bananas Smoothies Frozen Yogurt may operate or grant other franchises within the Development Area.