Is a Bananas Smoothies Frozen Yogurt franchisee required to act as the manager of the Franchised Business?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
PATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS**
You (or your Manager) shall exert your full-time and best efforts during business hours to the management of your restaurant. Your restaurant at all times must be under the direct supervision of a full time Manager (who may be you) who has completed our training program to our satisfaction. Your Manager need not have an equity interest in the franchised business.
Any person actively involved in the management of your franchise must enter into a confidentiality and non-competition agreement" which shall be approved first by us. If after a confidentiality and non-competition agreement is entered into you have reason to believe that any such person has violated the provisions of the "Confidentiality and Non-Competition Agreement", you must notify us immediately and cooperate with us to protect us against infringement or other unlawful use of the proprietary marks or the System.
Your Franchised Business must be under the direct on-premises supervision of a manager who has satisfactorily completed the required initial training as described in Item 11. We do not require that you act as manager of the Franchised Business. We recommend that you personally participate in the actual management and operation of the Franchised Business. If you are a corporation, we also require all officers, directors, and holders of a beneficial interest of five percent or more of the securities of the corporation and of any corporation directly or indirectly controlling a corporate or partnership franchisee, and to the general partners and any limited partner of a partnership or member of a limited liability company franchisee, to devote requisite time, energy, and best efforts to the management and operation of the Franchised Business and to guarantee the obligations under the Franchise Agreement.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 48–49)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt FDD, franchisees are not required to act as the manager of their franchised business. However, Bananas Smoothies Frozen Yogurt does recommend that franchisees personally participate in the actual management and operation of the business.
Regardless of whether the franchisee chooses to manage the location themselves or hire a manager, Bananas Smoothies Frozen Yogurt requires that the restaurant be under the direct, on-premises supervision of a full-time manager who has satisfactorily completed the initial training program. This manager does not need to have an equity interest in the franchised business.
If the franchisee is a corporation, Bananas Smoothies Frozen Yogurt requires all officers, directors, and holders of a beneficial interest of five percent or more of the securities of the corporation, as well as general partners and members of a limited liability company, to devote the necessary time, energy, and best efforts to the management and operation of the Franchised Business and to guarantee the obligations under the Franchise Agreement. Any manager hired must also meet the standards of local health department and other code enforcement agencies.