When are National Advertising Fund payments due for a Bananas Smoothies Frozen Yogurt franchise?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee 1 | Amount | Due Date | Remarks |
|---|---|---|---|
| National Advertising Fund | Current: 1% of Gross Sales Maximum 3% of Gross Sales | On Tuesday of each week based on Gross Sales for the preceding week | We have created a National Advertising Fund ("Fund") for which you must contribute a minimum of 1% of Gross Sales each week if the Franchised Business is located in a Regional Shopping Mall, Urban Retail Center, Major Office Building, Airport or Institutional Feeding Facility. |
Source: Item 6 — OTHER FEES (FDD pages 17–19)
What This Means (2025 FDD)
According to Bananas Smoothies Frozen Yogurt's 2025 Franchise Disclosure Document, franchisees are required to make payments to the National Advertising Fund on a weekly basis. Specifically, these payments are due on Tuesday of each week and are based on the Gross Sales from the preceding week. The minimum contribution is 1% of Gross Sales if the Franchised Business is located in a Regional Shopping Mall, Urban Retail Center, Major Office Building, Airport or Institutional Feeding Facility. The franchisor retains the right to increase the required minimum contribution, but it will not exceed a total of 3% of Gross Sales.
This weekly payment schedule means that franchisees must consistently monitor their sales and ensure timely submission of the required percentage to the National Advertising Fund. This fund is used for national advertising efforts, which are intended to benefit all franchisees by increasing brand awareness and attracting customers. The fact that the payment is tied to Gross Sales means that the contribution adjusts automatically with the business's performance, providing some flexibility.
It is important to note that the 1% contribution is a minimum requirement for specific locations, and Bananas Smoothies Frozen Yogurt can increase this up to 3%. Prospective franchisees should clarify with Bananas Smoothies Frozen Yogurt what the current percentage is and under what circumstances it might be increased. Understanding the potential maximum contribution is crucial for accurate financial planning. Franchisees should also be aware of the reporting procedures, as failure to report Gross Sales can lead to the franchisor debiting the franchisee's bank account based on the last reporting period's amount, along with potential late fees or interest.