When are royalty payments due for a Bananas Smoothies Frozen Yogurt franchise?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
6 OTHER FEES**
| Type of Fee 1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty | 5% of Gross Sales 2 | On Tuesday of each week based on Gross Sales 2 for the preceding week | You must submit royalty reports weekly by facsimile, electronic mail or such other system(s) we may designate on a system-wide basis. We will require payment by check draft for Royalties due or we may require you to submit reports manually and send in a check. 3 We may offer a credit on continuing Royalty Fees of up to $2,500 for 3a new Franchisee |
Source: Item 6 — OTHER FEES (FDD pages 17–19)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt Franchise Disclosure Document, royalty payments are due on Tuesday of each week. These payments are calculated based on 5% of the Gross Sales generated during the preceding week. Gross Sales include all revenues from the sale of food or merchandise, including cash, credit, catering, and delivery, but exclude customer refunds, meals, and excise taxes.
Bananas Smoothies Frozen Yogurt requires franchisees to submit royalty reports weekly via facsimile, electronic mail, or other designated systems. Payment is typically made through check drafts. The franchisor retains the right to debit the franchisee's bank account for the weekly royalty payments. If a franchisee fails to report Gross Sales, Bananas Smoothies Frozen Yogurt may debit the account based on the last reported period's amount, along with potential late fees and interest.
Prospective franchisees should be aware of the weekly reporting and payment schedule, as well as the methods accepted for submitting royalty payments. Understanding how Gross Sales are defined is also crucial for accurate royalty calculations. Franchisees should also note the implications of failing to report sales, which could lead to penalties and debits from their account.