Does the Bananas Smoothies Frozen Yogurt franchise agreement allow for involuntary transfers?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.6 Death or Permanent Disability. Upon Developer's death or permanent disability or that of one of Developer's Owners, the executor, administrator, conservator or other personal representative of such person must transfer his or her interest within a reasonable time, not to exceed 6 months from the date of death or permanent disability, to a third party approved by Franchisor. Such transfer, including, without limitation, transfer by devise or inheritance, is subject to all the conditions for transfers contained in Paragraph 11.4 of Section 11 and unless transferred by gift, devise or inheritance, subject to the terms of Paragraph 11.5 of Section 11. Failure to dispose of such interest within that time period constitutes a breach of this Agreement. Franchisor consent to a transfer of any interest subject to the restrictions of this Section does not constitute a waiver of any claims Franchisor may have against the assignor; nor will it be deemed a waiver of Franchisor's right to demand the assignee's exact compliance with any of the terms or conditions of this Agreement or any Franchise Agreements.
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt FDD, the franchise agreement addresses involuntary transfers specifically in the event of death or permanent disability of the franchisee or one of the franchisee's owners. In such cases, the executor, administrator, conservator, or other personal representative is required to transfer the interest to a third party approved by Bananas Smoothies Frozen Yogurt within six months.
This transfer is subject to all the conditions for transfers outlined in Paragraph 11.4 of Section 11 of the agreement, and unless transferred by gift, devise, or inheritance, it is also subject to the terms of Paragraph 11.5 of Section 11. Failure to complete the transfer within the specified six-month period constitutes a breach of the agreement.
Bananas Smoothies Frozen Yogurt's consent to a transfer under these circumstances does not waive any claims the franchisor may have against the assignor, nor does it waive the franchisor's right to demand exact compliance from the assignee with all terms and conditions of the agreement. This clause ensures that Bananas Smoothies Frozen Yogurt maintains control over who becomes a franchisee, even in involuntary transfer situations, and that all existing obligations are upheld.