After the Bananas Smoothies Frozen Yogurt franchise is terminated or expires, what are the non-competition restrictions?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Section in the Area Development Agreement | Summary |
|---|---|---|---|
| q. Non-competition covenants during the term of the franchise | Sec. 22 of the Franchise Agreement | §7.3 | No involvement in any competing business. |
| r. Non-competition covenants after the franchise is terminated or expires | Sec. 22 of the Franchise Agreement | §§10.2 and 13.5 (b) | Includes two-year prohibition similar to "q" on employment and engaging in a similar business within the protected territory, within a 5-mile radius of the Franchised Business, or within a 5-mile radius of any other Franchised Business under the same System |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 49–52)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt Franchise Disclosure Document, franchisees are subject to certain non-competition covenants both during the term of the franchise agreement and after it is terminated or expires.
After the Bananas Smoothies Frozen Yogurt franchise is terminated or expires, the franchisee is prohibited for two years from engaging in any similar business. This restriction applies within the protected territory granted to the franchisee, within a 5-mile radius of the former Franchised Business, or within a 5-mile radius of any other Bananas Smoothies Frozen Yogurt franchise operating under the same system.
This non-compete clause restricts the franchisee's ability to work in or operate a competing business for a defined period and within a specific geographic area after the franchise agreement ends. Prospective franchisees should carefully consider the implications of this restriction, especially if their future career plans involve the frozen yogurt or smoothie industry. It is important to understand the scope of the protected territory and the potential impact on future business opportunities.