What is the effect of the Franchise Agreement on the Bananas Smoothies Frozen Yogurt Sublease Agreement?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
| Sublessee ("Sublessee"): | State of Formation: | | Address: | | Sublease Date ("Sublease Date"): | Lease ("Lease"): | Dated: | Tenant ("Tenant"): | Landlord ("Landlord"): | Premises ("Demised Premises"): as described in the Lease. | | Guarantor: | This Sublease Agreement is made this day of, 20, by and between | | Everything Yogurt Brands, LLC, a Delaware limited liability company, having an address at 25 | | Washington Street, Morristown, New Jersey 07960 ("Sublessor") and, having an address | | at, ("Sublessee"). | | WHEREAS, Sublessor is the Tenant under the Lease, the terms and provisions of which are | | incorporated as if fully set out herein; and | | WHEREAS, Sublessee acknowledges and agrees that they are in receipt of a copy of the Lease | | and | WHEREAS, Sublessor has agreed with the Sublessee to grant a Sublease of the Demised Premise | | to Sublessee subject to the terms of this Sublease; and | | WHEREAS, Everything Yogurt Brands, LLC ("Franchisor") and Sublessee (as "Franchisee" | have previously executed the current Franchise Agreement ("Franchise Agreement") under which the | | Sublessee will operate a Restaurant as the term is defined in the Franchise Agreement subject to the term | | of the Franchise Agreement and this Sublease; and Sublessee acknowledges that Landlord may unilaterally
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt FDD, the Sublease Agreement between Everything Yogurt Brands, LLC (as Sublessor) and the franchisee (as Sublessee) is directly tied to the Franchise Agreement. The Sublease Agreement is granted to the franchisee so they can operate a Bananas Smoothies Frozen Yogurt Restaurant, as defined in the Franchise Agreement. The franchisee's rights under the Sublease are subject to the terms and duration of the Franchise Agreement. This means that the franchisee's ability to operate at the subleased premises is contingent upon maintaining a valid Franchise Agreement with Bananas Smoothies Frozen Yogurt.
Specifically, the FDD states that the franchisee acknowledges that the Landlord may unilaterally modify the Sublease. This indicates that the landlord has rights that can affect the agreement between Bananas Smoothies Frozen Yogurt and the franchisee.
This arrangement is typical in franchising, where the franchisor often has some control over the location of the franchise unit to ensure brand consistency and operational standards. The franchisee should carefully review both the Franchise Agreement and the Sublease Agreement to understand their rights and obligations, as well as the potential consequences if the Franchise Agreement is terminated.