When are royalty reports due for a Bananas Smoothies Frozen Yogurt franchise, and how must they be submitted?
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 sponsorships |
| Local advertising payment4 | 3% of Gross Sales | As incurred | 3% of gross sales each calendar quarter except in Regional Shopping Mall, Urban Retail Center, Major Office Building, Airport or Institutional Feeding Facility |
| National Advertising Fund | Current: 1% of Gross Sales Maximum 3% of Gross Sales | On Tuesday of each week based on Gross Sales for the preceding week | We have created a National Advertising Fund ("Fund") for which you must contribute a minimum of 1% of Gross Sales each week if the Franchised Business is located in a Regional Shopping Mall, Urban Retail Center, Major Office Building, Airport or Institutional Feeding Facility. |
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 reports are due on Tuesday of each week, based on the gross sales for the preceding week. These reports must be submitted weekly via facsimile, electronic mail, or any other system that Bananas Smoothies Frozen Yogurt may designate on a system-wide basis.
Bananas Smoothies Frozen Yogurt requires payment for royalties by check draft, or they may require manual report submission along with a check. To facilitate payments, franchisees must sign and deliver check drafts from their bank before opening, allowing Bananas Smoothies Frozen Yogurt to debit the franchisee's bank account for weekly royalty payments and other fees.
If a franchisee fails to report gross sales, Bananas Smoothies Frozen Yogurt may debit the franchisee's bank account for an amount equal to the last reported period's transfer, along with a late fee or interest at the maximum rate allowed by law. Overpayments will be credited against the next week's amount due, while deficiencies will be debited from the franchisee's account. This system ensures timely and accurate royalty payments, with mechanisms in place to address both underreporting and overpayment.