What is a Bananas Smoothies Frozen Yogurt franchisee required to pay in connection with the operation of the Restaurant?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
23. TAXES, PERMITS, AND INDEBTEDNESS
- 23.01 Prompt Payment of Taxes and Other Indebtedness.
Franchisee shall promptly pay when due all taxes levied or assessed, including, without limitation, unemployment, sales and meal taxes, and all accounts and other indebtedness of every kind incurred by Franchisee in the conduct of the Restaurant.
23.02 Bona Fide Dispute. In the event of any bona fide dispute as to liability for taxes assessed or other indebtedness, Franchisee may contest the validity or the amount of the tax or indebtedness in accordance with procedures of the taxing authority or applicable law; however, in no event shall Franchisee permit a tax sale or seizure by levy of execution or similar writ or warrant, or attachment by a creditor, to occur against the premises of the Restaurant, or any improvement thereon.
23.03 Compliance With All Laws.
Franchisee shall comply with all federal, state, and local laws, rules and regulations, and shall timely obtain any and all permits, certificates or licenses necessary for the full and proper conduct of the business licensed under this Agreement, including, without limitation, building and other required construction permits, licenses to do business and fictitious name registrations, sales tax permits, health and sanitation permits and ratings and fire clearance.
Copies of all subsequent inspection reports, warnings, certificates and ratings issued by any governmental entity during the term of this Agreement in connection with the conduct of the Restaurant which indicate Franchisee's failure to meet or maintain the highest governmental standards and ratings applicable to the operation of the Restaurant or less than full compliance by Franchisee with any applicable law, rule or regulation shall be forwarded to Franchiser by Franchisee within five (5) days of Franchisee's receipt thereof.
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt FDD, franchisees are responsible for various payments related to the operation of their restaurant. Franchisees must promptly pay all levied or assessed taxes when due, including unemployment, sales, and meal taxes, as well as all accounts and other debts incurred in running the Restaurant.
In the event of a legitimate dispute regarding tax liability or other indebtedness, a Bananas Smoothies Frozen Yogurt franchisee may contest the validity or amount of the tax or debt through the appropriate procedures. However, the franchisee cannot allow a tax sale, seizure, or attachment against the Restaurant premises.
Furthermore, Bananas Smoothies Frozen Yogurt franchisees must comply with all federal, state, and local laws, rules, and regulations. This includes obtaining all necessary permits, certificates, or licenses for conducting business, such as building permits, business licenses, sales tax permits, health and sanitation permits, and fire clearances. Franchisees are also required to forward copies of any inspection reports or warnings from governmental entities indicating failure to meet standards or comply with applicable laws to the Franchisor within five days of receipt.