What is the Bananas Smoothies Frozen Yogurt transfer fee, and when is it due?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Type of Fee 1 | Amount | Due Date | Remarks |
|---|---|---|---|
| We may increase the required minimum, but in no case shall the Fund be increased to more than a total of 3% of Gross Sales. | |||
| Site evaluation | Out-of-pocket expenses for visiting and inspecting proposed site | As incurred | Payable only if on-site inspection of proposed site is necessary. We reserve the right to charge a fee for conducting evaluations although a fee is not imposed at this time. 5 |
| Design and construction assistance expense | $250 - $750 | As incurred | For out-of-pocket expenses incurred in connection with replicating and shipping architectural and construction plans. |
| Audit by Franchisor | Cost of audit; interest due; $500 adjournment fee | As incurred | Costs of audit payable only if audit reveals understatement of 2% or more; however, interest will be charged if Gross Sales are underestimated by any amount; adjournment fee payable if you fail to prepare required documents for audit meeting |
| Transfer fee | $10,000 or if Franchisor's actual cost incurred exceeds $10,000, then in that event, the actual cost Franchisor incurred to complete the transfer | On or before date of transfer | Upon execution of transfer documents and completion of training |
| Renewal fee | 50% of the then current Initial Franchise Fee | On or before date of expiration of Franchise Agreement | Upon execution of renewal documents |
| Costs and attorneys' | Will vary under | As incurred | Payable on your failure to comply |
| fee | circumstances | with the Franchise Agreement | |
| Interest on overdue payments | Lesser of 1½ % per month or maximum rate permitted by law | As incurred | Payable on overdue amounts after ten (10) days |
| Conversion fee prior to the end of the term of the Franchise Agreement | 10% of the then current Initial Franchise Fee of the concept to which you wish to convert | On or before the date upon which the conversion is to become effective | Upon execution of conversion documents |
| Additional Assistance6 | $100 for each person per day | 30 days after billing | We reserve the right to charge for additional assistance and ongo |
Source: Item 6 — OTHER FEES (FDD pages 17–19)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt Franchise Disclosure Document, a franchisee who transfers their franchise must pay a transfer fee. The standard transfer fee is $10,000. However, if Bananas Smoothies Frozen Yogurt's actual costs incurred to complete the transfer exceed $10,000, the franchisee is responsible for paying the actual cost.
The transfer fee is due on or before the date of the transfer. Payment is required upon the execution of transfer documents and completion of training. This means a franchisee needs to have the funds available and paid before the transfer is finalized.
Franchise transfer fees are common in the franchise industry. They typically cover the franchisor's administrative costs, legal expenses, and the cost of training the new franchisee. The fee ensures that Bananas Smoothies Frozen Yogurt is compensated for their time and resources in facilitating the transfer and maintaining brand standards with the new owner.