factual

What is the growth incentive rebate based upon for Bananas Smoothies Frozen Yogurt?

Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDD

Answer from 2025 FDD Document

specific marketing campaign.

An Approved Supplier of beverage products has agreed, subject to certain conditions, to pay our affiliate, Villa Management, rebates based on purchases from company-owned Green Leaf's and Bananas restaurants, as well as purchases from our Franchisees who choose to sell such supplier's beverage products exclusively. (Our affiliate has agreed to sell such supplier's products exclusively through December 26, 2026 with respect to company-owned restaurants.) Under this program, our Affiliate receives from this Approved Supplier: (1) rebate to be used for various marketing and promotional programs aggregating greater than $5.00 per gallon of postmix products, of which we will remit to you $1.59 per gallon with respect to your purchases, if you participate; (2) a price protection rebate equal to the amount, if any, by which gross weighted average national account prices increase by a certain percentage over the prior year; (3) a $2,500 vendor rebate for each new restaurant that sells the designated vendor's beverage products exclusively and remains open for a contractually agreed period, which rebate we will use in our discretion for marketing and grand opening support of your restaurant; (4) growth incentive rebate based upon a per gallon post mix product purchases by the entire company-owned and franchise system and per case of packaged beverage products that are purchased by the entire company owned and franchise system and (5) rebates of $2.25 per case of packaged beverage products, which are to be used f

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 31–36)

What This Means (2025 FDD)

According to the 2025 Bananas Smoothies Frozen Yogurt Franchise Disclosure Document, a growth incentive rebate is provided by an approved beverage product supplier to Villa Management, Bananas Smoothies Frozen Yogurt's affiliate. This rebate is based on the total purchases made by both company-owned and franchised locations. Specifically, the rebate is calculated per gallon of post-mix product and per case of packaged beverage products purchased throughout the entire Bananas Smoothies Frozen Yogurt system.

This growth incentive aims to reward overall system growth and purchasing volume. However, the FDD does not specify the exact rebate amount per gallon or case, nor does it detail how these rebates are distributed or used by Villa Management. Franchisees should note that while the rebate is tied to system-wide purchases, the franchisor retains discretion over its use.

Prospective franchisees should inquire with Bananas Smoothies Frozen Yogurt about the specific amounts of the growth incentive rebate, how these funds are utilized, and whether any portion of the rebate benefits individual franchisees directly or indirectly through system-wide marketing or other support programs. Understanding the details of this incentive can help franchisees assess the potential benefits of participating in the designated beverage program.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.