Under what condition is the Bananas Smoothies Frozen Yogurt transfer fee waived?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
ed if not completed within ninety (90) days after Franchisor has waived its right of first refusal.
- 18.07 Transfer Fee. The Franchisee or the proposed transferee as negotiated by Franchisee and the proposed transferee shall pay, prior to an approved transfer of the franchise, a transfer fee of Ten Thousand Dollars ($10,000) to Franchisor, or if Franchisor's cost to complete the transfer exceed $10,000, then in that event, Franchisee shall pay Franchisor's actual cost upon ten (10) day notice to Franchisee by Franchisor. If Franchisor exercises its rights
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt FDD, the transfer fee is waived if the Franchisor exercises its rights to purchase the franchise. In all other proposed transfers, the franchisee is responsible for paying the transfer fee.
Specifically, if a franchisee wants to sell their Bananas Smoothies Frozen Yogurt franchise to a third party, they will typically have to pay a transfer fee of $10,000 to Bananas Smoothies Frozen Yogurt. However, if Bananas Smoothies Frozen Yogurt decides to buy the franchise back from the franchisee instead of allowing a transfer to a third party, the transfer fee is waived.
This condition benefits the franchisee because it removes the transfer fee in situations where the franchisor elects to repurchase the franchise. However, it's important to note that the franchisee does not have the option of waiving the fee in a normal transfer scenario.