What is the purpose of the administrative fee paid by Approved Suppliers to Bananas Smoothies Frozen Yogurt?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
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, Approved Suppliers may pay an administrative fee to Bananas Smoothies Frozen Yogurt. This fee averages approximately 7% of the sales made by the Approved Suppliers to the Bananas Smoothies Frozen Yogurt Franchised Businesses.
The purpose of this administrative fee is to reimburse Bananas Smoothies Frozen Yogurt for the costs they incur in connection with the administration of the distribution system and to cover product liability requirements. This means that the fee helps the franchisor manage the supply chain and address any potential legal issues related to the products sold in the franchise system.
Bananas Smoothies Frozen Yogurt retains the right to 100% of all discounts, rebates, commissions, or other consideration paid by Approved Suppliers and can use them for any purpose they choose. Franchisees have no rights to these funds. During the fiscal year ended December 29, 2024, Bananas Smoothies Frozen Yogurt's affiliates derived revenues of approximately $100,000 from these miscellaneous purchases.