Is the Bananas Smoothies Frozen Yogurt Sublease subject to the terms of the Franchise Agreement?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
r 25, 2022, respectively.
The Company recognized royalties from affiliate-owned franchises for the years ended December 29, 2024, December 31, 2023 and December 25, 2022, amounting to $329,934, $337,169 and $287,993, respectively.
As of December 29, 2024 and December 31, 2023, net royalties receivables from affiliate-owned franchises amounted to $15,251 and $14,987, respectively, and are included in royalties and advertising fees receivable, net in the accompanying balance sheets.
EXHIBIT J To Disclosure Document
Sublease Agreement
SUBLEASE
Sublessor ("Sublessor"):
| State of Formation: |
|---|
| Address: |
| Sublessee ("Sublessee"): |
| State of Formation: |
| Address: |
| Sublease Date ("Sublease Date"): |
| Lease ("Lease"): |
| Dated: |
| Tenant ("Tenant"): |
| Landlord ("Landlord"): |
| Premises ("Demised Premises"): as described in the Lease. |
| Guarantor: |
| This Sublease Agreement is made this day of, 20, by and between |
| Everything Yogurt Brands, LLC, a Delaware limited liability company, having an address at 25 |
| Washington Street, Morristown, New Jersey 07960 ("Sublessor") and, having an address |
| at, ("Sublessee"). |
| WHEREAS, Sublessor is the Tenant under the Lease, the terms and provisions of which are |
| incorporated as if fully set out herein; |
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt Franchise Disclosure Document, the Sublease agreement is subject to the terms of the Franchise Agreement. Specifically, the document states that the Sublessee (the franchisee) and Everything Yogurt Brands, LLC ("Franchisor") have previously executed the current Franchise Agreement under which the Sublessee will operate a Restaurant as the term is defined in the Franchise Agreement subject to the term of the Franchise Agreement and this Sublease.
This clause ensures that the franchisee's operation of the Bananas Smoothies Frozen Yogurt restaurant within the subleased premises adheres to the standards and guidelines set forth in the Franchise Agreement. It also acknowledges that the Landlord may unilaterally modify the Lease for the Demised Premises, in which case this Sublease Agreement may be amended.
This means that the franchisee must comply with all aspects of the Franchise Agreement, including operational procedures, quality control standards, and brand representation, while also adhering to the terms of the Sublease. Prospective franchisees should carefully review both the Franchise Agreement and the Sublease to understand their obligations and rights fully. They should also inquire about any potential modifications to the Lease by the Landlord and how those changes might affect the Sublease Agreement.