Does Bananas Smoothies Frozen Yogurt offer direct or indirect financing to franchisees?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
1 and 7 |
ITEM 10 FINANCING
We do not offer direct or indirect financing to you nor do We or any of Our affiliates receive any direct or indirect payments or other consideration from any person for the placement of financing with a lender, although we cooperate with the Small Business Administration approved lenders and will work with You to help You process SBA funding through any approved lender. We do not customarily guarantee any of your notes, leases, or other obligations to third parties although our affiliate has, from time to time, given certain limited guaranties on leases (but there is no obligation to do so). In certain limited situations, our affiliate may provide a limited guaranty of your lease with a third party, if you have acceptable credit and it is the only way to obtain an exceptional location.
Source: Item 10 — FINANCING (FDD pages 37–38)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Bananas Smoothies Frozen Yogurt does not offer direct or indirect financing to franchisees. Bananas Smoothies Frozen Yogurt also states that neither they nor their affiliates receive payments for the placement of financing with a lender. However, Bananas Smoothies Frozen Yogurt will cooperate with Small Business Administration (SBA) approved lenders and assist prospective franchisees in processing SBA funding through an approved lender.
While Bananas Smoothies Frozen Yogurt does not typically guarantee a franchisee's obligations to third parties, their affiliate may, in certain limited situations, provide a limited guaranty on a franchisee's lease with a third party. This is contingent on the franchisee having acceptable credit and if it is the only way to obtain an exceptional location.
The FDD also notes that a franchisee's ability to obtain financing from third parties depends on factors such as their creditworthiness, the type of security they can offer, the policies of lending institutions, and the availability and cost of commercial credit. The document cautions that franchisees may not be able to obtain a loan.