Is the Bananas Smoothies Frozen Yogurt Franchisor liable for any indebtedness or obligations of the Developer?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
12.2 No Liability for Acts of Other Party. Franchisor agrees not to employ any of the Marks in signing any contract or applying for any license or permit or in a manner that may result in our liability for any of your indebtedness or obligations.
Developer agrees to not use the Marks in any way not expressly authorized by this Agreement or the Franchise Agreements.
Except as expressly authorized in writing, neither Developer nor Franchisor will make any express or implied agreements, warranties, guarantees or representations or incur any debt in the name or on behalf of the other or be obligated by or have any liability under any agreements or representation made by the other.
Franchisor will not be obligated for any damages to any person or property directly or indirectly arising out of the operations of Developer's business authorized by or conducted pursuant to this Agreement.
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt Franchise Disclosure Document, the franchisor, Everything Yogurt Brands, LLC, will not be liable for any debts or obligations incurred by the developer. The agreement explicitly states that the franchisor will not use its trademarks in any way that could result in them being liable for the developer's financial responsibilities.
Bananas Smoothies Frozen Yogurt operates under the principle that both the franchisor and the developer are independent contractors. This arrangement ensures that neither party is considered an agent, partner, or employee of the other. The developer is required to clearly identify themselves as the owner of the development rights granted by the franchisor in all business dealings, reinforcing their independent status.
The developer is prohibited from making any agreements, warranties, or representations on behalf of Bananas Smoothies Frozen Yogurt unless expressly authorized in writing. Similarly, the developer cannot incur any debt in the name of the franchisor. This clause protects Bananas Smoothies Frozen Yogurt from being held responsible for any unauthorized actions or financial commitments made by the developer. Furthermore, Bananas Smoothies Frozen Yogurt will not be held responsible for any damages to people or property that arise directly or indirectly from the developer's business operations.