What fee must the transferee pay to Bananas Smoothies Frozen Yogurt?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
e deemed to have expired if not completed within ninety (90) days after Franchisor has waived its right of first refusal.
- 18.07 Transfer Fee. The Franchisee or the proposed transferee as negotiated by Franchisee and the proposed transferee shall pay, prior to an approved transfer of the franchise, a transfer fee of Ten Thousand Dollars ($10,000) to Franchisor, or if Franchisor's cost to complete the transfer exceed $10,000, then in that event, Franchisee shall pay Franchisor's actual cost upon ten (10) day notice to Franchisee by Franchisor. If Franchisor exercises its rights
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 FDD, a transferee seeking to acquire a Bananas Smoothies Frozen Yogurt franchise must pay a transfer fee. This fee is set at $10,000. However, the FDD stipulates that if Bananas Smoothies Frozen Yogurt's costs to complete the transfer exceed $10,000, the franchisee is responsible for paying the actual cost.
It's important to note that this fee is subject to certain conditions. If Bananas Smoothies Frozen Yogurt exercises its right to purchase the franchise, the transfer fee is waived entirely. Otherwise, the fee is the responsibility of the franchisee. This transfer fee is due before the transfer of the franchise is approved.
This type of transfer fee is common in franchising. It is designed to compensate the franchisor for their time and expenses in reviewing and approving the transfer, ensuring that the new franchisee meets their standards, and updating the franchise agreement. Prospective franchisees should factor this fee into their financial planning when considering the purchase of an existing Bananas Smoothies Frozen Yogurt franchise.