What rental obligations does a Bananas Smoothies Frozen Yogurt sublessee have to the sublessor?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
ly to the Landlord, pursuant to the terms and conditions of the Lease. The fees due under the Franchise Agreement will be paid to Franchisor pursuant to the terms of the Franchise Agreement.
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- Sublessee acknowledges that Sublessor and/or its affiliates has/have a long- standing relationship with the Landlord under the Lease. If, as a result of said relationship, Sublessor achieves a rent
credit or other savings under the Lease, Sublessor will retain the benefit of said credit and/or savings, and Sublessee will continue to pay Landlord the amounts due and owing on the attached Lease.
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- The Sublessee covenants with the Sublessor to perform as follows:
- (a) Pay rent as aforesaid; and
- (b) Perform and observe all of the covenants on the part of the Sublessor as tenant under the provisions of the Lease and to keep the Sublessor fully and completely indemnified against all actions, claims, expenses and demands in respect to each and every of such covenants; and
- (c) Not assign, sublet or part with possession of all or any part of the Demised Premises without the prior consent in writing of the Sublessor, which consent may be unreasonably withheld, or if granted, may be granted by the Sublessor upon such terms and conditions as the Sublessor may see fit; subject always to the prior consent of the Landlord in accordance with, and subject to, the terms of the Lease; and
- (d) Pay when due all continuing franchise fees and advertising contributions as required by Sublessee's Franchise Agreement; such payments being characterized as additional rent under this Sublease Agreement; and
- (e) Perform all of the covenants contained in the Franchise Agreement.
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- Sublessor shall have no liability to Sublessee with respect to any of the affirmative obligations of the Landlord under the Lease; but Sublessor shall, upon request of Sublessee and if required to do so by any applicable laws, codes or ordinances, bring any action or proceeding against the Landlord in Sublessee's name upon satisfactory proof to Sublessor's attorney from Sub.-Lessee that an action or proceeding must be taken in the name of Sublessor to cure or obtain any other relief on account of any breaches of the Lease on the part of the Landlord. Sublessee shall cooperate with Sublessor in any such action or proceeding. If not precluded from so doing by applicable law, Sublessor may include Sublessee as a party to any such action or proceeding, or may bring any such action or proceeding solely in the name of the Sublessee.
Sublessee may bring any such action or proceeding in its own name and on its own behalf provided Sublessee shall have first requested Sublessor to bring such action or proceeding and Sublessor shall not have, within thirty (30) days of such request, commenced such action or proceeding.
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt Franchise Disclosure Document, a sublessee has several rental obligations. The sublessee must pay rent as specified in the sublease agreement. They must also perform and observe all the covenants of the sublessor as a tenant under the original lease, ensuring the sublessor is fully indemnified against any related actions, claims, expenses, and demands. The sublessee is also responsible for paying all continuing franchise fees and advertising contributions as required by their Franchise Agreement; these payments are considered additional rent under the sublease agreement.
Furthermore, the Bananas Smoothies Frozen Yogurt sublessee is obligated to pay all rents and other charges due under the original lease directly to the landlord, adhering to the terms and conditions of that lease. However, if the sublessor achieves any rent credit or savings under the lease due to their relationship with the landlord, the sublessor retains the benefit of those savings, and the sublessee continues to pay the amounts due and owing on the original lease. This arrangement means that any financial advantages the sublessor gains from their landlord relationship do not reduce the sublessee's rental payments.
In the event the sublessee needs to take action against the landlord for breaches of the lease, they must first request the sublessor to do so. If the sublessor does not commence such action within 30 days, the sublessee may proceed on their own behalf. However, the sublessee must indemnify the sublessor for all attorney's fees and expenses incurred as a result of any action brought by the sublessee, or by the sublessor on behalf of the sublessee. The sublessor may also require the sublessee to pay in advance for anticipated attorney's fees and expenses if the sublessor brings the action. This highlights the importance of understanding the full scope of financial responsibilities and potential legal costs associated with the sublease.