Must a Bananas Smoothies Frozen Yogurt franchisee purchase a grand opening media kit?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
l Advertising Expenditure shall be spent by Franchisee, each month, as set forth in Paragraph 16 hereof.
- C. If the Restaurant is not located in a Regional Shopping Mall, Urban Retail Center, Major Office Building, Institutional Feeding Facility or Airport then Franchisee must expend a minimum of Three Thousand Dollars ($3,000.00) during the first thirty (30) days of operation on grand opening advertising. This shall include the purchase of a grand opening media kit from Franchisor or its designee. Franchisor shall advise Franchisee on how to expend such grand opening advertising monies, but Franchisor makes no representations concerning the extent or effectiveness of such advertising and promotion.
- 16.02 Definitions. As used herein, the terms "Regional Shopping Mall" "Urban Retail Center", "Major Office Building", "Institutional Feeding Facility" and "Airport" shall have the following meanings:
- A. A Regional Shopping Mall shall be deemed to mean a retail shopping center or other concentration of retail stores which has a contiguous area, whether or not enclosed, in which there is in excess of five hundred thousand (500,000) square feet of gross leasable retail space.
- B. An Urban Retail Center shall be deemed to mean: (i) an enclosed area specially designed to attract tourists which features food-serving businesses, (ii) located in the central business district of a city (or other relevant political subdivision) with a population of at least two hundred fifty thousand (250,000), (iii) in which area are located at least fifty (50) retail establishments, an
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt FDD, whether a franchisee is required to purchase a grand opening media kit depends on the location of their restaurant. If the Bananas Smoothies Frozen Yogurt restaurant is not located in a Regional Shopping Mall, Urban Retail Center, Major Office Building, Airport, or Institutional Feeding Facility, the franchisee must spend a minimum of $3,000 during the first 30 days of operation on grand opening advertising. This advertising expenditure must include the purchase of a grand opening media kit from Bananas Smoothies Frozen Yogurt or its designee.
Bananas Smoothies Frozen Yogurt will advise the franchisee on how to spend the grand opening advertising monies, but the company makes no guarantees regarding the extent or effectiveness of the advertising and promotion. This means that while the franchisee is obligated to spend the money and follow the franchisor's advice, there's no assurance that the advertising will generate the desired results.
For locations within a Regional Shopping Mall, Urban Retail Center, Major Office Building, Airport, or Institutional Feeding Facility, there is no Local Advertising Expenditure required because there is a National Advertising Fund. This suggests that advertising for these locations is handled at a national level, removing the local advertising requirement and the need to purchase a grand opening media kit. A Regional Shopping Mall is defined as a retail shopping center with over 500,000 square feet of gross leasable retail space, while an Urban Retail Center is an enclosed area designed for tourists in a central business district with a population of at least 250,000, featuring at least 50 retail establishments and over 100,000 square feet of gross leasable retail space.