How is the growth incentive rebate for Bananas Smoothies Frozen Yogurt calculated?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer 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, the growth incentive rebate is based upon a per gallon of post mix product purchases and per case of packaged beverage products purchased by the entire company-owned and franchise system.
This means that the more the entire Bananas Smoothies Frozen Yogurt system (both company-owned and franchised locations) purchases of these specific beverage products, the larger the growth incentive rebate becomes. However, the FDD does not specify the exact calculation or formula used to determine the rebate amount per gallon or case.
As a prospective franchisee, it's important to note that while this rebate exists, the specific details of its calculation are not provided in this section of the FDD. It would be prudent to inquire with Bananas Smoothies Frozen Yogurt about the historical data on this rebate, the projected growth targets, and how this incentive is distributed or used to benefit franchisees directly.