Does Bananas Smoothies Frozen Yogurt require franchisor approval for franchisee transfers?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Section in the Area Development Agreement | Summary |
|---|---|---|---|
| l. | Sec. 18 of | §§11.2 and 11.3 | We have the right to approve transfers |
| Franchisor approval | the | ||
| of transfer by | Franchise | ||
| franchisee | Agreement | ||
| m.Conditions for franchisor approval of transfer | Sec. 18 of the Franchise Agreement | §11.4 | Includes payment of money owed, execution of release by transferor, transferee assumes Franchisee's transferee assumes Franchisee's obligations, payment of transfer fee, and others |
| n. Franchisor's right of first refusal to acquire franchisee's business | Sec. 18 of the Franchise Agreement | §11.5 | We can match any offer, or the cash equivalent |
| o. Franchisor's option to purchase franchisee's business | Sec. 18 of the Franchise Agreement | None | We have the right to purchase any or all of your equipment, materials, or inventory at your cost or fair market value within 30 days of termination or expiration |
| p. death or disability of franchisee | Sec. 18 of the Franchise Agreement | §11.6 | Interest in Franchised Business will be transferred to a third-party we have approved |
| q. Non-competition covenants during the term of the franchise | Sec. 22 of the Franchise Agreement | §7.3 | No involvement in any competing business. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 49–52)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Bananas Smoothies Frozen Yogurt requires franchisor approval for any transfer of a franchise. The FDD indicates that Bananas Smoothies Frozen Yogurt retains the right to approve any transfer of the franchise by a franchisee. This requirement is detailed in Section 18 of the Franchise Agreement and Sections 11.2 and 11.3 of the Area Development Agreement.
Several conditions must be met to gain Bananas Smoothies Frozen Yogurt's approval for a transfer. These conditions, outlined in Section 18 of the Franchise Agreement and Section 11.4 of the Area Development Agreement, include paying any outstanding debts owed to Bananas Smoothies Frozen Yogurt, securing a release from the transferring franchisee, ensuring the transferee assumes all of the franchisee's obligations, and paying a transfer fee. These stipulations ensure that Bananas Smoothies Frozen Yogurt maintains control over who operates its franchises and that all financial and contractual obligations are met during the transfer process.
Bananas Smoothies Frozen Yogurt also has the right of first refusal to acquire the franchisee's business. According to Section 18 of the Franchise Agreement and Section 11.5 of the Area Development Agreement, Bananas Smoothies Frozen Yogurt can match any offer made by a potential buyer or offer the cash equivalent. This provision allows Bananas Smoothies Frozen Yogurt to maintain control over its brand and operations by potentially buying back a franchise rather than approving a transfer to an outside party. Furthermore, in the event of the death or disability of a franchisee, the interest in the franchised business will be transferred to a third party approved by Bananas Smoothies Frozen Yogurt, as stated in Section 18 of the Franchise Agreement and Section 11.6 of the Area Development Agreement.