What is the standard transfer fee for a Bananas Smoothies Frozen Yogurt franchise?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
ed if not completed within ninety (90) days after Franchisor has waived its right of first refusal.
- 18.07 Transfer Fee. The Franchisee or the proposed transferee as negotiated by Franchisee and the proposed transferee shall pay, prior to an approved transfer of the franchise, a transfer fee of Ten Thousand Dollars ($10,000) to Franchisor, or if Franchisor's cost to complete the transfer exceed $10,000, then in that event, Franchisee shall pay Franchisor's actual cost upon ten (10) day notice to Franchisee by Franchisor. If Franchisor exercises its rights
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt Franchise Disclosure Document, a franchisee who wishes to transfer their franchise must pay a transfer fee. The standard transfer fee is $10,000. However, if Bananas Smoothies Frozen Yogurt's costs to complete the transfer exceed $10,000, the franchisee will be responsible for paying the actual cost. Bananas Smoothies Frozen Yogurt will provide the franchisee with ten days' notice if the transfer costs exceed the standard fee.
If Bananas Smoothies Frozen Yogurt exercises its right to purchase the franchise, the transfer fee is waived. In all other proposed transfers, the franchisee is responsible for paying the fee. The transfer fee is to be paid prior to the approved transfer of the franchise.
This fee covers Bananas Smoothies Frozen Yogurt's administrative and legal expenses associated with reviewing and approving the transfer to a new franchisee. It is a standard practice in franchising to charge a transfer fee to ensure that the franchisor can adequately vet potential new franchisees and protect the brand's integrity.