For Bananas Smoothies Frozen Yogurt, what is the duration of the post-term competitive restriction?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
10.2 Post-Term Competitive Restrictions. Upon termination or expiration of this Agreement for any reason, Developer and Developer's Owners and guarantors agree that, for a period of 2 years commencing on the effective date of termination or expiration, no Restricted Person will have any direct or indirect interest (e.g. through a spouse, child, or other family member) as a disclosed or beneficial owner, investor, partner, director, officer, employee, consultant, member, manager, representative or agent or in any other capacity in any Competitive Business operating:
- (a) at any Site or within the Development Area;
- (b) within 5 miles of any Site or the Development Area; or
- (c) within 5 miles of any other EYB Concept, planned, in operation or under construction on the later of the effective date of the termination or expiration.
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt FDD, if the franchise agreement is terminated or expires, the franchisee, their owners, and guarantors are subject to a post-term competitive restriction for a period of 2 years. This restriction begins on the effective date of the termination or expiration.
During this 2-year period, these restricted parties are prohibited from having any direct or indirect interest in a Competitive Business. This includes involvement as an owner, investor, partner, director, officer, employee, consultant, member, manager, representative, or agent.
The competitive restriction applies to businesses operating at the franchise location (Site) or within the Development Area, within 5 miles of the Site or Development Area, or within 5 miles of any other Bananas Smoothies & Frozen Yogurt location that is planned, in operation, or under construction at the time of termination or expiration.