What were the total advertising fund revenues for Bananas Smoothies Frozen Yogurt in 2022?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
| | | 2024 | 2023 | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------|------------------------------------------------|--------------------------------------------------------| | ASSETS | | | | | Current assets: Cash and cash equivalents Royalties and advertising fees receivable, net | $ | 364,512 22,494 | $ 561,480 22,504 | | TOTAL ASSETS | $ | 387,006 | $ 583,984 | | LIABILITIES AND MEMBERS' E | QUIT | Y | | | Current liabilities: Accounts payable and accrued expenses Advertising fund payable Deferred revenue, current (opened stores) Due to affiliates Total current liabilities | $ | 9,399 191,491 9,993 45,584 256,467 | $ 11,405 171,722 13,583 10,443 207,153 | | Long-term liabilities: Deferred revenue, net of current (opened stores) Total liabilities | | 13,823 270,290 | 23,816 230,969 | | Commitments and contingencies (Notes 1, 5 and 7) | | | | | Members' equity | | 116,716 | 353,015 | | TOTAL LIABILITIES AND MEMBERS' EQUITY | $ | 387,006 | $ 583,984 | ![]
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Bananas Smoothies Frozen Yogurt's advertising fund revenues for 2022 were $71,085. This figure represents the total amount of money collected for advertising purposes from franchisees during that year. These funds are specifically earmarked to be used for advertising and promotional programs to benefit the Bananas Smoothies Frozen Yogurt franchise system.
For a prospective franchisee, understanding the advertising fund revenues is important because it provides insight into the financial resources available for marketing the brand. A higher advertising fund revenue typically allows for more extensive and impactful advertising campaigns, which can drive customer traffic and increase sales for individual franchise locations. The FDD also indicates that franchisees contribute up to 1% of sales towards the advertising fund.
It's also important to note that the FDD includes details on how these advertising funds are managed and spent. Bananas Smoothies Frozen Yogurt recognizes the revenues and expenses related to the advertising fund on a gross basis, meaning they account for the total revenue collected and the total expenses incurred. The company considers its right to access its intellectual property and the administration of the advertising fund as a single performance obligation, treating revenues from the advertising fund as sales-based royalties. This accounting practice ensures transparency in how advertising funds are handled and reported.
Prospective franchisees should review the complete Item 23 in the FDD, including the accompanying notes, to fully understand how the advertising fund operates, how contributions are calculated, and how the funds have been used in the past. Understanding these details can help franchisees assess the potential benefits of the advertising fund and its impact on their business.