For what purpose is the National Advertising Fund used by Bananas Smoothies Frozen Yogurt?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
s or directors will not contribute to the Fund.
The Fund will be used to meet the costs of maintaining, administering, directing and preparing advertising (including, without limitation, the cost of preparing and conducting television, radio, magazine and newspaper campaigns and other public relations activities; advertising agencies to assist; and providing promotional brochures and other marketing materials for you to distribute). All of the money paid by you will be maintained in a separate account from our other funds and will not be used to defray our general operating expenses. The money may be used for reasonable administrative costs and overhead that we may incur in administering or directing the Fund and advertising programs including conducting market research, preparing marketing and advertising materials and collecting and accounting for assessments for the Fund.
We will prepare an annual accounting of the Fund which will be available to you on request. We specifically reserve the right to require any advertising cooperatives to be formed, changed, dissolved or merged. No part of the advertising funds are devoted to the solicitation of franchisees. Any funds which are left in the Fund at the end of the fiscal year are carried into the next year. We do not have an advertising council.
You may not advertise or maintain a presence on the Internet or any other computer network in connection with your Franchised Business without our prior approval which we have the right to withhold in our sole discretion.
You may not use any of our Marks on the World Wide Web and must obtain our permission and approval for all Internet domain names and/or home page addresses.
For the fiscal year ending December 29, 2024, advertising cost amounted to approximately $51,351. The purposes for which we spent National Advertising Fund contributions in 2024 were:
- A. National Promotions (15%)
- B. Media (20%)
- C. Research and Development (50%)
D.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 38–43)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt FDD, the National Advertising Fund is used to cover the costs of maintaining, administering, and directing advertising efforts. This includes preparing and conducting advertising campaigns across various media such as television, radio, magazines, and newspapers, as well as other public relations activities. The fund also covers the costs of hiring advertising agencies and providing promotional brochures and other marketing materials for franchisees to distribute.
The funds collected are maintained in a separate account and are not used for Bananas Smoothies Frozen Yogurt's general operating expenses. However, the funds may be used for reasonable administrative costs and overhead incurred in administering or directing the Fund and advertising programs. This includes conducting market research, preparing marketing and advertising materials, and managing the collection and accounting of assessments for the Fund.
For the fiscal year ending December 29, 2024, advertising costs totaled approximately $51,351. These funds were allocated to national promotions (15%), media (20%), research and development (50%), and miscellaneous marketing (15%). Bananas Smoothies Frozen Yogurt retains sole discretion over the creative concepts, materials, and media used in advertising programs, with the goal of maximizing public recognition and acceptance of the brand's proprietary marks and the overall system. The FDD specifies that Bananas Smoothies Frozen Yogurt is not obligated to ensure that expenditures from the Fund are equivalent or proportionate to any particular franchisee's contribution, nor is it obligated to ensure that any franchisee benefits directly or pro rata from the Fund's expenditures.