Is the Bananas Smoothies Frozen Yogurt franchise license for the Marks exclusive?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee expressly acknowledges and agrees that this license of the Marks is nonexclusive, and the Franchisor has and retains the rights, among others:
- A.
To grant other franchises for the Marks, in addition to those franchises already granted to existing franchisees;
- B.
To use the Marks in connection with the sale of food and other products at wholesale and retail at any location outside of the Premises of this Agreement.
- C.
To develop and establish other systems for the same or similar products or services utilizing the same or similar Marks, or any other Marks, and to grant franchises thereto without providing Franchisee any right therein.
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt FDD, the franchise license granted is nonexclusive. Specifically, section 12.06 of the franchise agreement states that the franchisee acknowledges and agrees that the license of the Marks is nonexclusive. This means that Bananas Smoothies Frozen Yogurt retains several rights regarding the Marks.
Bananas Smoothies Frozen Yogurt has the right to grant other franchises for the Marks, in addition to existing franchisees. They can also use the Marks in connection with the sale of food and other products at wholesale and retail outside of the franchisee's premises. Furthermore, Bananas Smoothies Frozen Yogurt can develop and establish other systems for similar products or services using the same or similar Marks, or any other Marks, and grant franchises for those without providing the franchisee any rights.
This nonexclusive arrangement means that a Bananas Smoothies Frozen Yogurt franchisee may face competition from other franchisees or from Bananas Smoothies Frozen Yogurt itself through different channels or brands. The franchisee's agreement to these terms is intended to protect the franchisor's rights to expand and modify its business as it sees fit. Prospective franchisees should consider the potential impact of this nonexclusive license on their business and market area.