How are royalty reports submitted for a Bananas Smoothies Frozen Yogurt franchise?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 |
- 3 Before opening you must sign and deliver to us check drafts from your bank needed to permit us to debit your bank account for each week's Royalty payments and other payments that you make to us.
If you fail to report Gross Sales, we may debit your bank account in an amount equal to the amount transferred from your account the last reporting period for which a report of Gross Sales of the Franchised Business was provided to us, together with a late fee and/or interest for that amount at the maximum rate allowed by law.
We will credit any overpayment against the next week's amount due.
Any deficiency is debited from your account.
- 3a We currently have a new Franchisee Sponsorship Program that allows you to receive a check for Two-Thousand-Five Hundred ($2,500) Dollars when you sponsor one new Franchisee who we approve in our sole and absolute discretion as a Franchisee and who executes our then current Franchise Agreement and all other required franchise documents within twelve (12) months of the date you refer the prospect to us.
To qualify, the prospect must not have previously contacted us about a franchise nor ever been a sponsored prospect before or who owns or shares ownership in an existing restaurant and after executing our Franchise Agreement and other related documents the Franchisee you referred must open the franchise restaurant for business.
This sponsorship program only applies to the Restaurant described in Item 7 (excluding any conversions).
We reserve the right to discontinue this program at any time, however, we will honor any sponsorship made during the existence of the program.
Source: Item 6 — OTHER FEES (FDD pages 17–19)
What This Means (2025 FDD)
According to Bananas Smoothies Frozen Yogurt's 2025 Franchise Disclosure Document, royalty reports are due every Tuesday for the preceding week's gross sales. Franchisees must submit these reports weekly via facsimile, electronic mail, or any other system Bananas Smoothies Frozen Yogurt designates on a system-wide basis. Payment for royalties is required via check draft, or Bananas Smoothies Frozen Yogurt may require manual report submission accompanied by a check.
If a franchisee fails to report gross sales, Bananas Smoothies Frozen Yogurt has the right to debit the franchisee's bank account. The debited amount will be equal to the amount transferred from the account during the last reporting period for which a gross sales report was provided. Additionally, a late fee or interest at the maximum rate allowed by law may be applied to that amount. Overpayments will be credited to the next week's amount due, while deficiencies will be debited from the franchisee's account.
Before opening their Bananas Smoothies Frozen Yogurt location, franchisees must sign and deliver check drafts from their bank. These drafts allow Bananas Smoothies Frozen Yogurt to debit the franchisee's bank account for weekly royalty payments and other payments. This ensures timely and consistent payment of fees. Bananas Smoothies Frozen Yogurt also offers a new Franchisee Sponsorship Program, where franchisees can receive $2,500 for sponsoring a new franchisee who is approved and executes the franchise agreement within 12 months of the referral date. However, this program excludes conversions and Bananas Smoothies Frozen Yogurt reserves the right to discontinue it at any time, while honoring existing sponsorships.