How should the Local Advertising Expenditure be spent each month by a Bananas Smoothies Frozen Yogurt franchisee?

According to Bananas Smoothies Frozen Yogurt's 2025 Franchise Disclosure Document, after a restaurant opens, franchisees must spend a specified amount on local advertising and promotion each month, termed the "Local Advertising Expenditure." The details of how this expenditure should be spent each month are outlined in Paragraph 16 of the agreement.

The Local Advertising Expenditure is equivalent to 3% of the Gross Sales each calendar quarter if the Bananas Smoothies Frozen Yogurt restaurant is not located in a Regional Shopping Mall, Urban Retail Center, Major Office Building, Airport, or Institutional Feeding Facility. However, if the restaurant is located in one of these specified locations, there is no Local Advertising Expenditure due to the existence of a National Advertising Fund.

Furthermore, if the Bananas Smoothies Frozen Yogurt restaurant is not in one of the specified locations, the franchisee 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 on how to spend these grand opening advertising funds, they do not guarantee the extent or effectiveness of the advertising and promotion.