For a Bananas Smoothies Frozen Yogurt franchise, what is the relationship between the Franchise Agreement and the Sublease Agreement?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
December 25, 2022, amounting to $329,934, $337,169 and $287,993, respectively.
As of December 29, 2024 and December 31, 2023, net royalties receivables from affiliate-owned franchises amounted to $15,251 and $14,987, respectively, and are included in royalties and advertising fees receivable, net in the accompanying balance sheets.
EXHIBIT J To Disclosure Document
Sublease Agreement
SUBLEASE
Sublessor ("Sublessor"):
| State of Formation: |
|---|
| Address: |
| 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; |
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt Franchise Disclosure Document, the Franchise Agreement and the Sublease Agreement are related in several key ways. The Sublease Agreement is contingent upon the Franchise Agreement. The Sublease Agreement is between Everything Yogurt Brands, LLC, as the sublessor, and the franchisee, as the sublessee. The Franchise Agreement is between Everything Yogurt Brands, LLC, as the franchisor and the franchisee.
Specifically, the FDD states that the Sublease Agreement is granted to the sublessee (franchisee) so they can operate a Bananas Smoothies Frozen Yogurt restaurant, as defined in the Franchise Agreement. The franchisee's operation of the restaurant is subject to both the terms of the Franchise Agreement and the Sublease Agreement. If the Franchise Agreement is terminated for any reason by Everything Yogurt Brands, LLC, the Sublease Agreement is also terminated on the same day. Additionally, if the franchisee fails to make required payments, such as franchise fees or advertising contributions, to Everything Yogurt Brands, LLC, this constitutes a default under the Sublease Agreement.
Everything Yogurt Brands, LLC, as the sublessor, has the right to re-enter the premises if the sublessee defaults on rent payments or fails to comply with the covenants and agreements outlined in the Sublease Agreement. This right can be exercised immediately upon default without prior notice to the sublessee. The sublessee is required to pay rents and other charges directly to the landlord, as stipulated in the lease, while fees due under the Franchise Agreement are paid to the franchisor according to the Franchise Agreement's terms. This arrangement ensures that the franchisee's rights to operate the Bananas Smoothies Frozen Yogurt location are directly tied to their compliance with both the franchise terms and the lease obligations.