How can a Bananas Smoothies Frozen Yogurt franchisee avoid termination for a curable default?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as otherwise provided in Paragraphs 19.01, 19.02 and the subparagraphs of 19.02 of this Agreement, upon any other default by Franchisee, Franchisor may terminate this Agreement only by providing written notice of termination (in the manner set forth in Section 26 hereof) stating the nature of such default to Franchisee at least thirty (30) days prior to the effective date of termination, except for non-payment of monies for which Franchisee shall receive only ten (10) days' prior written notice; provided, however, that Franchisee may avoid termination by immediately initiating a remedy to cure such default, curing it to Franchisor's sole satisfaction, and by promptly providing proof thereof to Franchisor within the thirty (30) day period.
If any such default is not cured within the specified time, or such longer period as applicable law may require, then this Agreement shall terminate without
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt FDD, a franchisee can avoid termination for a curable default by immediately initiating a remedy to cure the default, curing it to Bananas Smoothies Frozen Yogurt's sole satisfaction, and promptly providing proof of the cure within a specified time frame. For most defaults, the franchisee has at least thirty (30) days after receiving written notice to cure the default. However, if the default is for non-payment of monies, the franchisee only has ten (10) days to cure the default after receiving written notice.
It's important to note that the cure must be to Bananas Smoothies Frozen Yogurt's "sole satisfaction," which gives them significant discretion in determining whether the default has been adequately resolved. The franchisee bears the responsibility of providing prompt proof of the cure, so maintaining thorough records of actions taken to remedy the default is essential.
Certain defaults do not offer an opportunity to cure, leading to immediate termination upon written notice. These include failing to commence operation or ceasing operation of the Restaurant, conviction of a felony, posing a threat to public health and safety, or transferring rights without prior written consent from Bananas Smoothies Frozen Yogurt. Additionally, if a franchisee is late on royalty or other payments to Bananas Smoothies Frozen Yogurt two times within a twelve-month period, Bananas Smoothies Frozen Yogurt retains the right to terminate the agreement automatically, even if the franchisee cured the prior monetary defaults.
Therefore, a Bananas Smoothies Frozen Yogurt franchisee should prioritize consistent and timely payments, adherence to operational standards, and compliance with all contractual obligations to minimize the risk of default and potential termination. Maintaining open communication with Bananas Smoothies Frozen Yogurt and promptly addressing any concerns can also help in resolving issues before they escalate into defaults.