Who must directly supervise the Bananas Smoothies Frozen Yogurt Restaurant at all times?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Ownership Interest: As a developer of multiple EYB Concepts, Developer will not be in a position to have direct, personal day-to-day management responsibility for the EYB Concepts that Developer will own and operate. However, Developer understands and acknowledges that each of the EYB Concepts that Developer (or your affiliates) own and operate must be under the oversight, supervision and direction of an Operating Partner who has a direct economic ownership interest (at least 10 %) in such EYB Concept (or the Business Entity that owns and operates it). Accordingly, Developer agrees that each Green Leaf's Restaurant will be under the oversight and direction of an Operating Partner who meets all the following qualifications and conditions:
- (i) Has ownership interest of at least 10% of the economic interest in such Green Leaf's Restaurant or Business Entity;
- (ii) Has a sufficient amount of experience in managing and operating restaurants in terms of duration, operational responsibilities and previous training and who has satisfactorily completed Franchisor's training programs so that such person can demonstrate to our satisfaction that he or she is capable of overseeing the operations of an EYB Concept;
- (iii) Has oversight responsibility and authority over the EYB Concept on a dayto-day basis;
- (iv) Is bound by Franchisor's then-current form of confidentiality and noncompetition agreement (or other form of contract satisfactory to Franchisor); and
- (v) Satisfactorily completes Franchisor's initial training program, certification and any other training programs we request from time to time.
Developer will provide to Franchisor a copy of the organizational and governing documents for the Business Entity(ies) that demonstrates that the Operating Partner has the requisite ownership interest.
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt FDD, if a developer owns multiple EYB Concepts, they may not be in a position to have direct, personal day-to-day management responsibility for each Bananas Smoothies Frozen Yogurt concept. In this case, each Bananas Smoothies Frozen Yogurt restaurant must be under the oversight, supervision, and direction of an Operating Partner.
The Operating Partner must have at least a 10% direct economic ownership interest in the Bananas Smoothies Frozen Yogurt restaurant or the business entity that owns and operates it. This Operating Partner needs sufficient experience in managing and operating restaurants, including duration, operational responsibilities, and previous training. They must also satisfactorily complete Bananas Smoothies Frozen Yogurt's training programs to demonstrate their capability to oversee the operations of the Bananas Smoothies Frozen Yogurt concept.
The Operating Partner must have oversight responsibility and authority over the Bananas Smoothies Frozen Yogurt concept on a day-to-day basis. They must also be bound by Bananas Smoothies Frozen Yogurt's confidentiality and noncompetition agreement. The developer must provide Bananas Smoothies Frozen Yogurt with a copy of the organizational and governing documents for the Business Entity(ies) that demonstrates that the Operating Partner has the requisite ownership interest.