Is the initial deposit for a Bananas Smoothies Frozen Yogurt franchise assignable to another party?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
cumstances.
You may make an Initial Deposit in the sum of $12,500 (or 10% of the purchase price if you are buying one of our company restaurants) for a single franchise location. A copy of the Deposit Agreement is included as Exhibit "One J" to the Franchise Agreement. If we accept the deposit and we both sign the Deposit Agreement you may purchase a franchise under the terms available at the time the deposit is made. The deposit will be applied to the Initial Franchise Fee if the franchise is purchased within ninety (90) days from the date the deposit was accepted.
If you do not purchase a franchise (or complete the purchase of one of our available for sale company restaurants) within the ninety (90) day period we will refund fifty (50%) percent of the initial deposit within ten (10) days from the expiration of the ninety (90) day period. The deposit is applicable to the purchase by the depositing Party only, and is not
Source: Item 5 — INITIAL FEES (FDD pages 15–17)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt Franchise Disclosure Document, the initial deposit is not assignable. A potential franchisee may make an initial deposit of $12,500 for a single franchise location. If Bananas Smoothies Frozen Yogurt accepts the deposit and both parties sign the Deposit Agreement, the franchisee may purchase a franchise under the terms available at the time the deposit is made. This deposit will be applied to the Initial Franchise Fee if the franchise is purchased within ninety days from the date the deposit was accepted.
If the franchisee does not purchase a franchise within the ninety-day period, Bananas Smoothies Frozen Yogurt will refund fifty percent of the initial deposit within ten days from the expiration of the ninety-day period. However, the FDD explicitly states that the deposit is applicable to the purchase by the depositing party only and is not assignable. This means that the initial deposit cannot be transferred or assigned to another individual or entity.
This non-assignability clause protects Bananas Smoothies Frozen Yogurt by ensuring that the deposit is tied to the specific individual or entity that made the deposit, preventing potential complications or disputes that could arise if the deposit were freely transferable. A prospective franchisee should be aware of this restriction and ensure they are prepared to proceed with the franchise purchase within the specified timeframe to avoid losing a portion of their deposit.