What must a transfer of a Bananas Smoothies Frozen Yogurt franchise comply with?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
11.8 Franchise Transfers. A transfer of any EYB Concept developed pursuant to this Agreement may be made only in connection with the transfer of the Franchise Agreement for such EYB Concept, and a transfer of the Franchise Agreement for any such EYB Concept may be made only in connection with the transfer of all interests of Developer in such EYB Concept (or the affiliate that owns such EYB Concept). A transfer must comply with all of the requirements for a transfer set forth in the Franchise Agreement.
(iv) the transferee must meet Franchisor's current owner criteria and agree to be bound by and expressly assume all of the terms and conditions of this Agreement for the remainder of its term;
(v) if permitted by applicable law, Developer (and Developer's Owners) shall execute a general release, under seal, in the form satisfactory to Franchisor, of any and all claims against Franchisor and Franchisor's officers, directors, employees and agents;
(vi) Franchisor must approve the material terms and conditions of such transfer including, without limitation, that the price and terms of payment are not so burdensome as to affect adversely the future development of the Development Area and the operation of EYB Concepts in it;
(vii) if the transferee finances any part of the sale price of the transferred interest, Developer (and Developer's Owners) must agree that all obligations of the transferee under or pursuant to any promissory notes, agreements or security interests reserved by Developer (or Developer's Owners) must be subordinate to transferee's obligations to us to comply with this Agreement or Franchise Agreements executed by the transferee;
(viii) all Restricted Persons must sign and deliver to Franchisor an agreement in which they will comply with the competitive restrictions contained in Paragraph 10.2 of Section 10 of this Agreement for 2 years commencing on the effective date of the transfer; and
(ix) the transferee must pay us a fee equal to 50% of the remainder of the Franchise Fees for the EYB Concepts that are required to be opened under the Development schedule that are not yet open.
In connection with any transfer permitted under this Section, Developer agrees to provide Franchisor with all documents to be signed by Developer and the proposed assignee or transferee at least 30 business days prior to signing.
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt FDD, a transfer of any EYB Concept developed must be made in connection with the transfer of the Franchise Agreement for such EYB Concept. The transfer of the Franchise Agreement can only be made if all interests of the Developer in such EYB Concept (or the affiliate that owns such EYB Concept) are also transferred. The transfer must comply with all requirements for a transfer set forth in the Franchise Agreement.
Specifically, the proposed transferee must meet Bananas Smoothies Frozen Yogurt's current owner criteria and agree to be bound by and expressly assume all the terms and conditions of the Franchise Agreement for the remainder of its term. The Developer (and the Developer's Owners) must execute a general release, if permitted by applicable law, in a form satisfactory to Bananas Smoothies Frozen Yogurt, releasing any and all claims against Bananas Smoothies Frozen Yogurt and its officers, directors, employees, and agents.
Bananas Smoothies Frozen Yogurt must approve the material terms and conditions of the transfer, ensuring that the price and terms of payment do not adversely affect the future development of the Development Area and the operation of EYB Concepts within it. If the transferee finances any part of the sale price, the Developer (and Developer's Owners) must agree that all obligations of the transferee under any promissory notes, agreements, or security interests are subordinate to the transferee's obligations to comply with the Franchise Agreement. All Restricted Persons must sign and deliver to Bananas Smoothies Frozen Yogurt an agreement to comply with the competitive restrictions for 2 years from the transfer date. The transferee must also pay Bananas Smoothies Frozen Yogurt a fee equal to 50% of the remaining Franchise Fees for the EYB Concepts required to be opened under the Development schedule but are not yet open.
In connection with any permitted transfer, the Developer must provide Bananas Smoothies Frozen Yogurt with all documents to be signed by the Developer and the proposed assignee or transferee at least 30 business days prior to signing.