Who is solely responsible for the selection of an appropriate site for the Bananas Smoothies Frozen Yogurt Restaurant?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) The Restaurant shall be located at the Restaurant Location identified on the Franchise Agreement Summary Page, ("Premises").
Franchisee acknowledges that Franchisee selected the Premises subject to Franchisor's approval. Neither Franchisor's site selection guidelines and requirements, Franchisor's approval of the Premises, nor any information Franchisor may impart to Franchisee about the Premises, constitutes a warranty or representation of any kind, express or implied, that the Restaurant will be profitable or successful. Franchisor's approval of the Premises merely signifies that Franchisor authorizes Franchisee to operate the Restaurant at that site. Franchisee is solely responsible for the selection of an appropriate site for the Restaurant. If Franchisor negotiates a lease for the Premises on Franchisee's behalf, which lease, in Franchisor's reasonable judgment, would be acceptable for the operation of the Restaurant, Franchisee must pay Franchisor a reasonable lease negotiation fee, which may include both legal costs (including time spent by any in-house counsel) and brokerage fees.
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt FDD, the franchisee is solely responsible for selecting an appropriate site for the Restaurant. However, the franchisee acknowledges that this selection is subject to the Franchisor's approval. The franchisor's approval signifies only that the franchisee is authorized to operate at the site.
Bananas Smoothies Frozen Yogurt states that neither the franchisor's site selection guidelines, approval of the premises, nor any information imparted to the franchisee constitutes a warranty or representation of any kind that the restaurant will be profitable or successful. This means that while Bananas Smoothies Frozen Yogurt may provide guidance or approve the location, the ultimate responsibility for the site's success rests with the franchisee.
Furthermore, if Bananas Smoothies Frozen Yogurt negotiates a lease for the premises on the franchisee's behalf and deems it acceptable, the franchisee must pay a reasonable lease negotiation fee. This fee may include legal costs and brokerage fees. This highlights that while the franchisee is responsible for site selection, Bananas Smoothies Frozen Yogurt may offer assistance in lease negotiation for a fee.