What is the purpose of the Bananas Smoothies Frozen Yogurt Sublease Agreement?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
r 25, 2022, respectively.
The Company recognized royalties from affiliate-owned franchises for the years ended December 29, 2024, December 31, 2023 and December 25, 2022, amounting to $329,934, $337,169 and $287,993, respectively.
As of December 29, 2024 and December 31, 2023, net royalties receivables from affiliate-owned franchises amounted to $15,251 and $14,987, respectively, and are included in royalties and advertising fees receivable, net in the accompanying balance sheets.
EXHIBIT J To Disclosure Document
Sublease Agreement
SUBLEASE
Sublessor ("Sublessor"):
| State of Formation: |
|---|
| Address: |
| Sublessee ("Sublessee"): |
| State of Formation: |
| Address: |
| Sublease Date ("Sublease Date"): |
| Lease ("Lease"): |
| Dated: |
| Tenant ("Tenant"): |
| Landlord ("Landlord"): |
| Premises ("Demised Premises"): as described in the Lease. |
| Guarantor: |
| This Sublease Agreement is made this day of, 20, by and between |
| Everything Yogurt Brands, LLC, a Delaware limited liability company, having an address at 25 |
| Washington Street, Morristown, New Jersey 07960 ("Sublessor") and, having an address |
| at, ("Sublessee"). |
| WHEREAS, Sublessor is the Tenant under the Lease, the terms and provisions of which are |
| incorporated as if fully set out herein; and |
| WHEREAS, Sublessee acknowledges and agrees that they are in receipt of a copy of the Lease |
| and |
| WHEREAS, Sublessor has agreed with the Sublessee to grant a Sublease of the Demised Premise |
| to Sublessee subject to the terms of this Sublease; and |
| WHEREAS, Everything Yogurt Brands, LLC ("Franchisor") and Sublessee (as "Franchisee" |
| have previously executed the current Franchise Agreement ("Franchise Agreement") under which the |
| Sublessee will operate a Restaurant as the term is defined in the Franchise Agreement subject to the term |
| of the Franchise Agreement and this Sublease; and Sublessee acknowledges that Landlord may unilaterally |
| modify the Lease for the Demised Premises in which case this Sublease Agreement may be amended |
| modify the Leade for the Definition Fromtier in which case this subjects regionitely the difficult |
NOW, THEREFORE, in consideration of the rents reserved under the Sublease, the mutual covenants contained herein and for other good and valuable consideration, the parties agree as follows:
unilaterally by Sublessor to comport to the modification made by Landlord.
-
- The Sublessor hereby Subleases the entire Premises to the Sublessee for a term equal to the original term of the Lease less one (1) day, commencing on the date Sublessee takes possession of the Demised Premises.
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt FDD, the Sublease Agreement formalizes the arrangement where Everything Yogurt Brands, LLC, as the tenant under a lease, grants a sublease of the Demised Premises to a Sublessee, who will operate a Bananas Smoothies Frozen Yogurt restaurant. This agreement is contingent upon the franchisee (Sublessee) having a current Franchise Agreement with Everything Yogurt Brands, LLC. The Sublease Agreement ensures that the franchisee can operate their Bananas Smoothies Frozen Yogurt business at the specified location, subject to the terms outlined in both the Franchise Agreement and the Sublease Agreement. The document also acknowledges that the Landlord may modify the lease for the Demised Premises, which could result in amendments to the Sublease Agreement. This arrangement allows the franchisee to occupy and use the premises for their Bananas Smoothies Frozen Yogurt business.
The Sublease Agreement also addresses the relationship between Everything Yogurt Brands, LLC (as Franchisor) and the franchisee (Sublessee) in relation to the original lease. It states that the franchisee acknowledges and agrees to be in receipt of a copy of the original lease. This clause ensures that the franchisee is aware of all the terms and conditions of the original lease, which are incorporated into the Sublease Agreement. The Sublease agreement clarifies the roles, responsibilities, and rights of each party involved, including the original landlord, Everything Yogurt Brands, LLC (as sublessor), and the franchisee (as sublessee).
Furthermore, the FDD states that if the Franchise Agreement between Everything Yogurt Brands, LLC, and the tenant expires or terminates, Everything Yogurt Brands, LLC, has the option to have the tenant's rights under the lease assigned and transferred to them. To exercise this option, Everything Yogurt Brands, LLC, must provide written notice to the landlord within 30 days of the termination or expiration of the Franchise Agreement. If Everything Yogurt Brands, LLC, takes over the lease, they have the right to assign or sublease the premises to another Bananas Smoothies Frozen Yogurt franchisee without needing the landlord's consent. This provides Everything Yogurt Brands, LLC, with flexibility in managing the location and ensuring continued operation of a Bananas Smoothies Frozen Yogurt restaurant at that site.