What payments are due to Bananas Smoothies Frozen Yogurt and its affiliates upon termination?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon termination or expiration, this Agreement and all rights granted hereunder to Franchisee shall forthwith terminate, and:
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the franchise agreement between Bananas Smoothies Frozen Yogurt and the franchisee terminates immediately upon either termination or expiration. The document does not specify any further payments due to Bananas Smoothies Frozen Yogurt or its affiliates upon termination.
However, the FDD does state that failure to make payments to the Sublessor's affiliate as Franchisor of any and all franchise fees, advertising contributions and other required payments, shall constitute a default under a Sublease Agreement. It is important to note that this clause refers to payments due during the term of the agreement, and not specifically payments due upon termination.
Prospective franchisees should carefully review the franchise agreement and consult with a legal and financial advisor to fully understand all financial obligations, including those that may arise upon termination, even if not explicitly detailed in this section.