Does Bananas Smoothies Frozen Yogurt grant an exclusive license to use its marks to franchisees?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee expressly acknowledges and agrees that this license of the Marks is nonexclusive, and the Franchisor has and retains the rights, among others:
- A.
To grant other franchises for the Marks, in addition to those franchises already granted to existing franchisees;
- B.
To use the Marks in connection with the sale of food and other products at wholesale and retail at any location outside of the Premises of this Agreement.
- C.
To develop and establish other systems for the same or similar products or services utilizing the same or similar Marks, or any other Marks, and to grant franchises thereto without providing Franchisee any right therein.
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt FDD, the franchise agreement grants a nonexclusive license to use its marks. Bananas Smoothies Frozen Yogurt retains the right to grant other franchises for the same marks, even in the vicinity of existing franchisees. They can also use the marks to sell food and other products at wholesale and retail locations outside the franchisee's premises.
Bananas Smoothies Frozen Yogurt also retains the right to develop and establish other systems for similar products or services, utilizing the same or similar marks, or any other marks, and grant franchises for these without providing the franchisee any rights. This means that a franchisee's rights to the Bananas Smoothies Frozen Yogurt marks are limited and nonexclusive.
This nonexclusive arrangement means that a Bananas Smoothies Frozen Yogurt franchisee could potentially face competition from other franchisees or from Bananas Smoothies Frozen Yogurt itself, selling similar products under the same or similar marks. This is a common practice in franchising, allowing franchisors to expand their brand reach through various channels and locations. However, it's crucial for prospective franchisees to understand that their territory is not protected from direct competition by the franchisor.