Can a Bananas Smoothies Frozen Yogurt franchisee face competition from other franchisees?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
We grant you the right to operate one restaurant under the Marks at a specific location to be approved by us. You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. You have no territorial or exclusive rights and the Franchisor has the unfettered right to own, operate, and license others
to own and operate any of our restaurant concepts anywhere, including in the vicinity and market area of your restaurant. You may not conduct the business of your restaurant at any site other than the premises, or relocate your restaurant without our prior written consent. The Franchise Agreement does not provide you with any options, rights of first refusal, or similar rights to acquire additional franchises.
Source: Item 12 — TERRITORY (FDD pages 43–46)
What This Means (2025 FDD)
According to Bananas Smoothies Frozen Yogurt's 2025 Franchise Disclosure Document, franchisees may face competition from other franchisees. The FDD states that Bananas Smoothies Frozen Yogurt does not grant exclusive territories, meaning that other franchisees, outlets owned by Bananas Smoothies Frozen Yogurt, or other distribution channels or competitive brands controlled by Bananas Smoothies Frozen Yogurt could operate in the same area.
This lack of an exclusive territory is a significant consideration for potential franchisees. Without territorial protection, a franchisee's business could be impacted by the opening of a new Bananas Smoothies Frozen Yogurt location nearby, or by other competitive brands that Bananas Smoothies Frozen Yogurt controls. This could lead to a decrease in sales and profitability for the franchisee.
Bananas Smoothies Frozen Yogurt retains the right to operate and franchise its restaurant concepts anywhere, including in the vicinity of a franchisee's restaurant. They can also sell products or services under their marks through other channels of distribution like the Internet, potentially competing directly with franchisees. This extensive reservation of rights by Bananas Smoothies Frozen Yogurt underscores the importance of carefully evaluating the market and potential competition before investing in a franchise.
However, if a franchisee secures a lease site at an approved location other than an airport or an institutional feeding facility, Bananas Smoothies Frozen Yogurt will grant a circular protected area. This area extends one-tenth of a mile in all directions from the front door of the franchised business, or is limited to the Regional Shopping Mall in the case of a Regional Shopping Mall. This protected area offers some limited safeguard against direct competition from another Bananas Smoothies Frozen Yogurt franchise, but it does not eliminate competition from other sources or different brands.