How is a 'transfer' by a Bananas Smoothies Frozen Yogurt franchisee defined in the Franchise Agreement?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Section in the Area Development Agreement | Summary |
|---|---|---|---|
| Sec. 1 of Sublease Agreement | |||
| b. | Sec. 2 of the | §§2.2-2.4 | 1 additional 10-year term over terms |
| Renewal or extension | |||
| of the term | Franchise Agreement | of then-current Franchise Agreement | |
| c. Requirements for franchisee to renew or extend | Sec. 2 of the Franchise Agreement | §2.2 | Notice, satisfaction of monetary obligations, compliance with Franchise Agreement, execute the then current Franchise Agreement, which may have materially different terms and conditions from your original contract, payment of a renewal fee, and others |
| d. | Not | None | You may not terminate the Franchise |
| Termination by | |||
| franchisee e. Termination by | Applicable Sec. 19 of | None | Agreement If the restaurant lease is not signed |
| franchisor without cause | the Franchise Agreement | within 9 months after execution of the Franchise Agreement | |
| f. | Sec. 19 of | §9 | Default under the Franchise |
| Termination by | |||
| franchisor with cause | the Franchise Agreement | Agreement, bankruptcy, abandonment, and others | |
| g. "Cause" defined – curable defaults | Sec. 19 of the Franchise Agreement | §9 | Failure to pay monies owed to us, failure to maintain required standards, violation of any federal, state or local law, and others |
| h. "Cause" defined – non-curable defaults | Sec. 19 of the Franchise Agreement | §9 | Bankruptcy, voluntary abandonment, conviction of felony, violation of in term covenants, and others |
| i. Franchisee's obligations on termination/non renewal | Secs. 19, 20, 21 and 22 of the Franchise Agreement | §10 | Obligations include complete de identification, payment of amounts due, including attorney fees for enforcement in judicial or arbitration proceedings, compliance with covenants, and others |
| j. Assignment of franchise by franchisor | Sec. 18 of the Franchise Agreement | §11.1 | There are no limits on our right to assign the Franchise Agreement |
| k. "Transfer" by franchisee - defined | Sec. 18 of the Franchise Agreement | §11.2 | Includes transfer of any interest in the Franchised Business |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 49–52)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt Franchise Disclosure Document, a transfer by a franchisee is defined broadly. The FDD indicates that Section 18 of the Franchise Agreement and Section 11.2 of the Area Development Agreement define 'transfer' by a franchisee.
Specifically, the documents state that the definition of 'transfer' includes the transfer of any interest in the Franchised Business. This means that any action that results in another party gaining ownership, control, or a financial stake in the Bananas Smoothies Frozen Yogurt franchise is considered a transfer.
This definition is important for prospective franchisees to understand because it triggers certain requirements, such as franchisor approval. Bananas Smoothies Frozen Yogurt retains the right to approve any transfer, ensuring that new operators meet their standards and have the necessary qualifications. This also protects the integrity of the Bananas Smoothies Frozen Yogurt brand and network. Franchisees should carefully review Section 18 of the Franchise Agreement to fully understand the implications of transferring any interest in their franchise.