How often must a Bananas Smoothies Frozen Yogurt franchisee submit royalty reports?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
15.02 Royalty Reports. Franchisee shall submit to Franchisor weekly, by facsimile, electronic mail or other system or systems the Franchisor designates on a system wide basis, no later than the date each Royalty and Service Fee payment (see Paragraph 10.03) is due during the term of this Agreement, a statement on forms prescribed by Franchisor, accurately reflecting all Gross Sales during the preceding week and such other data or information as Franchisor may require. Franchisee shall submit to Franchisor by the twenty-fifth (25th) day of each month copies of any state or local sales tax returns for the preceding month and a monthly operating statement in the form prescribed by Franchisor. If Franchisee shall fail to provide Franchisor with the sales reports required in this Paragraph 15.02, Franchisor shall be entitled, at its discretion and in whichever situations it deems appropriate, to apply an annual growth rate on gross sales of eight percent (8%), including, but not limited to, for the purpose of calculating any Royalty and for enforcement and collection of any amounts due to Franchisor under this Agreement.
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt FDD, franchisees are required to submit royalty reports on a weekly basis. These reports must be submitted via facsimile, electronic mail, or any other system that Bananas Smoothies Frozen Yogurt designates. The reports are due no later than the date that each Royalty and Service Fee payment is due. These reports must accurately reflect all Gross Sales during the preceding week, along with any other data or information that Bananas Smoothies Frozen Yogurt may require.
In addition to the weekly royalty reports, Bananas Smoothies Frozen Yogurt franchisees must also submit copies of any state or local sales tax returns for the preceding month and a monthly operating statement by the twenty-fifth day of each month. These monthly operating statements must be in a format prescribed by Bananas Smoothies Frozen Yogurt.
Failure to provide the required sales reports can result in Bananas Smoothies Frozen Yogurt applying an annual growth rate of eight percent on gross sales. This growth rate can be used for calculating any Royalty and for the enforcement and collection of any amounts due to Bananas Smoothies Frozen Yogurt under the Franchise Agreement. This highlights the importance of submitting accurate and timely reports to avoid potential penalties or disputes with the franchisor.