Does Bananas Smoothies Frozen Yogurt negotiate purchase agreements with suppliers for the benefit of its franchisees?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
blishment of your restaurant.
We attempt to negotiate purchase agreements with suppliers (including price terms) for the benefit of all Green Leaf's Beyond Great Salads, Bananas Smoothies & Frozen Yogurt, Everything Yogurt, Gretel's Pretzels, South Philly Steaks & Fries, and South Philly Cheesesteaks & Fries restaurants, including those owned by franchisees; however, we (or our affiliates) have the right to retain 100% of all discounts, rebates, commissions or other consideration paid by Approved Suppliers and to use them for whatever purposes we elect and you may claim no rights thereto. The Approved Suppliers may pay us an administrative fee which averages approximately 7% of sales by Approved Suppliers to the Franchised Business. This fee is based on sales to the Franchised Businesses in order to reimburse us for our costs incurred in connection with the administration of the distribution system and product liability requirements. We do not provide material benefits (e.g., renewal or additional franchises) to a franchisee based on his use of designated or Approved Suppliers. During the fiscal year ended December 29, 2024 our affiliates derived revenues of approximately $100,000 from
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 31–36)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt Franchise Disclosure Document, Bananas Smoothies Frozen Yogurt attempts to negotiate purchase agreements with suppliers for the benefit of its franchisees. These negotiations extend to Green Leaf's Beyond Great Salads, Everything Yogurt, Gretel's Pretzels, South Philly Steaks & Fries, and South Philly Cheesesteaks & Fries restaurants. However, Bananas Smoothies Frozen Yogurt retains the right to keep 100% of all discounts, rebates, commissions, or other considerations paid by Approved Suppliers, and franchisees have no rights to these.
Approved Suppliers may pay Bananas Smoothies Frozen Yogurt an administrative fee, which averages approximately 7% of sales by Approved Suppliers to the Franchised Business. This fee is intended to reimburse Bananas Smoothies Frozen Yogurt for costs related to administering the distribution system and meeting product liability requirements. The FDD states that Bananas Smoothies Frozen Yogurt does not provide material benefits, such as renewal or additional franchises, to a franchisee based on their use of designated or Approved Suppliers.
For the fiscal year ended December 29, 2024, Bananas Smoothies Frozen Yogurt's affiliates derived revenues of approximately $100,000 from these miscellaneous purchases. This indicates that while Bananas Smoothies Frozen Yogurt aims to negotiate favorable terms, the financial benefits derived from these agreements may primarily benefit the franchisor rather than directly reducing costs for the franchisee. A prospective franchisee should consider this when evaluating the overall cost structure and potential profitability of a Bananas Smoothies Frozen Yogurt franchise.