What is the Bananas Smoothies Frozen Yogurt franchisee's obligation regarding the sale of approved items?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
(i) Divert, or attempt to divert any business, or customer of the Restaurant, to any competitor by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the good will associated with the Franchisor's proprietary marks and the System; or
(ii) Own, maintain, advise, help, invest in or make loans to, be employed by, engage in or have any interest in any business (including any business operated by Franchisee prior to entry into the Agreement) that operates a restaurant which, in whole or in part, sells the same or similar types of food and beverages as Franchisor or any of its franchisees including without limitation that which is sold by Franchisee at the Restaurant and specifically including salads, wraps, paninis, frozen yogurt and smoothies, including, but not limited to, any of the specific items set forth in Exhibit "One H".
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, a Bananas Smoothies & Frozen Yogurt franchisee faces restrictions on selling items that compete with the franchised concept. The franchisee cannot operate a business that sells the same or similar types of food and beverages as the franchisor or its franchisees. This includes specific items like salads, wraps, paninis, frozen yogurt, and smoothies, as detailed in Exhibit "One H".
The franchisee is prohibited from diverting business or customers to competitors or taking actions that harm the goodwill associated with the franchisor's marks and system. This extends to not owning, maintaining, advising, or investing in any business that sells similar food and beverages, encompassing salads, wraps, paninis, frozen yogurt, and smoothies.
These restrictions are designed to protect the Bananas Smoothies & Frozen Yogurt system's competitive advantage and maintain uniformity across all franchise locations. Franchisees must adhere to these guidelines to avoid breaching the franchise agreement and to uphold the standards of the brand.