Does the Bananas Smoothies Frozen Yogurt Franchise Agreement include an SBA Addendum as an exhibit?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT ONE E
to the Franchise Agreement between Franchisor and Franchisee. The terms and definitions set out in the Summary Page of the Franchise Agreement are incorporated herein and made a part hereof as if fully set out.
SBA ADDENDUM TO FRANCHISE AGREEMENT
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
Yes, according to the 2025 Franchise Disclosure Document, the Bananas Smoothies Frozen Yogurt franchise agreement includes an SBA Addendum as Exhibit ONE E. This addendum addresses the relationship between the franchisor and franchisee specifically in the context of SBA-assisted financing.
This addendum is important because it clarifies that the standard franchise agreement is modified to the extent necessary to comply with SBA requirements when a franchisee obtains SBA-backed financing. The addendum ensures that the franchise agreement does not contain provisions that would violate SBA regulations or otherwise jeopardize the franchisee's ability to secure and maintain SBA financing.
The SBA Addendum automatically terminates when the SBA no longer has any interest in the SBA-assisted financing provided to the franchisee. The Bananas Smoothies Frozen Yogurt franchisee and franchisor acknowledge that submitting false information or withholding material information from the SBA can result in criminal prosecution under 18 U.S.C. 1001 and other provisions, including liability for treble damages under the False Claims Act, 31 U.S.C. §§ 3729 - 3733.
The addendum specifically states that it only addresses "affiliation" between the Franchisor and Franchisee. Additionally, the applicant Franchisee and the franchise system must meet all SBA eligibility requirements.