What obligations does a Bananas Smoothies Frozen Yogurt franchisee have upon termination or non-renewal of the franchise?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Section in the Area Development Agreement | Summary |
|---|---|---|---|
| i. Franchisee's obligations on termination/non renewal | Secs. 19, 20, 21 and 22 of the Franchise Agreement | §10 | Obligations include complete de identification, payment of amounts due, including attorney fees for enforcement in judicial or arbitration proceedings, compliance with covenants, and others |
| o. Franchisor's option to purchase franchisee's business | Sec. 18 of the Franchise Agreement | None | We have the right to purchase any or all of your equipment, materials, or inventory at your cost or fair market value within 30 days of termination or expiration |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 49–52)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt Franchise Disclosure Document, Item 17 outlines the franchisee's obligations upon termination or non-renewal. These obligations are detailed in Sections 19, 20, 21, and 22 of the Franchise Agreement, as well as Section 10 of the Area Development Agreement.
Specifically, Bananas Smoothies Frozen Yogurt franchisees must completely de-identify the premises, meaning they must remove all signage, branding, and materials that identify the location as a Bananas Smoothies Frozen Yogurt franchise. Franchisees are also obligated to pay all outstanding amounts due to Bananas Smoothies Frozen Yogurt, which may include attorney fees if the franchisor incurs such fees to enforce the agreement in judicial or arbitration proceedings.
Furthermore, franchisees must continue to comply with any applicable covenants, which may include non-compete agreements. Bananas Smoothies Frozen Yogurt also has the option to purchase any or all of the franchisee's equipment, materials, or inventory at the franchisee's cost or fair market value within 30 days of termination or expiration.