How must the Local Advertising Expenditure be spent by a Bananas Smoothies Frozen Yogurt franchisee?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
l Center, Major Office Building, Airport or Institutional Feeding Facility.
- B. The Local Advertising Expenditure shall be spent by Franchisee, each month, as set forth in Paragraph 16 hereof.
- C. If the Restaurant is not located in a Regional Shopping Mall, Urban Retail Center, Major Office Building, Institutional Feeding Facility or Airport then Franchisee must expend a minimum of Three Thousand Dollars ($3,000.00) during the first thirty (30) days of operation on grand opening advertising. This shall include the purchase of a grand opening media kit from Franchisor or its designee. Franchisor shall advise Franchisee on how to expend such grand opening advertising monies, but Franchisor makes no representations concerning the extent or effectiveness of such advertising and promotion.
- 16.02 Definitions. As used herein, the terms "Regional Shopping Mall" "Urban Retail Center", "Major Office Building", "Institutional Feeding Facility" and "Airport" shall have the following meanings:
- A.
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt FDD, franchisees are required to spend their Local Advertising Expenditure each month as outlined in Paragraph 16 of the franchise agreement. The Local Advertising Expenditure is equivalent to 3% of the restaurant's gross sales each calendar quarter if the restaurant is not located in a Regional Shopping Mall, Urban Retail Center, Major Office Building, Airport, or Institutional Feeding Facility.
For new Bananas Smoothies Frozen Yogurt locations not in the specified locations, franchisees must spend a minimum of $3,000 during the first 30 days of operation on grand opening advertising. This includes purchasing a grand opening media kit from Bananas Smoothies Frozen Yogurt or its designee. While Bananas Smoothies Frozen Yogurt will advise franchisees on how to spend these grand opening advertising funds, the FDD states that Bananas Smoothies Frozen Yogurt makes no guarantees regarding the extent or effectiveness of the advertising and promotion.
Paragraph 16.01 states that each month after the restaurant opens, the franchisee must spend an amount on local advertising and promotion, which will be deemed the "Local Advertising Expenditure". This is in addition to any advertising contribution required under Sections 10 and 16 of the franchise agreement. This means that franchisees need to budget not only for the initial grand opening advertising but also for ongoing monthly local advertising expenses, in addition to any national advertising fund contributions.