How is the transfer fee calculated for a Bananas Smoothies Frozen Yogurt development agreement?

According to the 2025 Bananas Smoothies Frozen Yogurt FDD, if a developer seeks to transfer their Area Development Agreement, the transferee must pay a fee. This transfer fee is calculated as 50% of the remaining franchise fees for the Bananas Smoothies Frozen Yogurt concepts that are required to be opened under the development schedule but have not yet been opened.

In practical terms, this means that if a developer has committed to opening a certain number of Bananas Smoothies Frozen Yogurt locations within a specified timeframe and wants to sell their development rights before fulfilling that commitment, the buyer will need to compensate Bananas Smoothies Frozen Yogurt for half of the franchise fees that would have been paid for the remaining unbuilt locations. This fee is in addition to meeting Bananas Smoothies Frozen Yogurt's other requirements for transfer, such as the transferee meeting the franchisor's current owner criteria and agreeing to be bound by the existing agreement.

This transfer fee could be a significant cost for a potential transferee, especially if a large number of locations remain to be developed. It also serves as a financial incentive for the original developer to fulfill their development obligations. Prospective franchisees should carefully consider the development schedule and associated costs before entering into an Area Development Agreement with Bananas Smoothies Frozen Yogurt, as transferring the agreement later could incur substantial fees.