Does Bananas Smoothies Frozen Yogurt have a National Advertising Fund?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.03 National Advertising Fund.
Franchisee acknowledges that Franchisor has established a National Advertising Fund (the "Fund") for the System.
Franchisee agrees that Franchisee shall make contributions to the Fund as required under Paragraph 10.02 hereof and file reports weekly by facsimile, electronic mail or such other system or system as the Franchisor may designate on a system wide basis (or we may require that you send the reports manually), and that the Fund shall be maintained and administered by Franchisor or its designee, as follows:
- A.
Franchisor shall direct all advertising programs with sole discretion over the creative concepts, materials and media used in such programs and the placement and allocation thereof.
Franchisee agrees and acknowledges that the Fund is intended to maximize general public recognition and acceptance of the Marks for the benefit of the System and that Franchisor and its designees undertake no obligation in administering the Fund to make expenditures for Franchisee which are equivalent or proportionate to its contribution, or to insure that any particular franchisee benefits directly or pro rata from the placement of advertising.
- B.
Franchisee agrees that the Fund may be used to meet any and all costs of maintaining, administering, directing and preparing advertising (including, without limitation, the cost of preparing and conducting television, radio, magazine and newspaper advertising campaigns and other public relations activities; employing advertising agencies to assist therein; and providing promotional brochures and other marketing materials for distribution by franchisees in the System).
All sums paid by Franchisee to the Fund
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt FDD, the franchise does have a National Advertising Fund. Franchisees are required to contribute to this fund as outlined in Paragraph 10.02 of the franchise agreement and must submit reports weekly. These reports can be sent via facsimile, electronic mail, or any other system designated by Bananas Smoothies Frozen Yogurt. The fund is managed and administered by Bananas Smoothies Frozen Yogurt or its appointed designee.
Bananas Smoothies Frozen Yogurt has sole discretion over the advertising programs, including the creative concepts, materials, media used, and the allocation of these resources. The FDD states that the purpose of the National Advertising Fund is to maximize public recognition and acceptance of the brand for the overall benefit of the Bananas Smoothies Frozen Yogurt system. However, there is no obligation for Bananas Smoothies Frozen Yogurt to ensure that expenditures made from the fund are equivalent or proportionate to a franchisee's contribution, nor is there a guarantee that any specific franchisee will directly or proportionally benefit from the advertising placements.
The National Advertising Fund may cover all costs associated with maintaining, administering, directing, and preparing advertising materials. This includes the costs of television, radio, magazine, and newspaper advertising campaigns, public relations activities, employing advertising agencies, and providing promotional brochures and other marketing materials for distribution by franchisees. All payments made by franchisees go into this fund.