Under what conditions will Bananas Smoothies Frozen Yogurt not unreasonably withhold approval of a transfer?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Application: If Developer (or, if Developer is a Business Entity, Developer's Owners) are in full compliance with this Agreement and all of the Franchise Agreements, Franchisor will not unreasonably withhold its approval of a transfer that meets all the applicable requirements of this Section.
The proposed transferee and its owners must be individuals of good moral character and otherwise meet our then applicable standards for developers of EYB Concepts.
(b) Development Rights: If the transfer of the development rights granted under this Agreement or a controlling interest in the Developer, or if the transfer is one of a series of transfers which in the aggregate constitute the transfer of the development rights granted under this Agreement or a controlling interest in the Developer, all of the following conditions must be met prior to or concurrently with the effective date of the transfer:
(i) the transferee must have sufficient business experience, aptitude and financial resources to operate Developer's business and develop the Development Area, and must either already own an EYB Concept or is acquiring one or more of them in association with the transfer;
(ii) Developer agrees to pay Franchisor all amounts owed to Franchisor or Franchisor's affiliates, if any, which are then due and unpaid and submit all required reports and statements which have not yet been submitted, under this Agreement, any Franchise Agreement or any other agreement between Developer (or an affiliate) and Franchisor (or our affiliates);
(iii) the transferee and/or the transferee's personnel must agree to complete Franchisor's initial training program to Franchisor's satisfaction;
(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;
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt FDD, the franchisor will not unreasonably withhold approval of a transfer if the developer (or the developer's owners, if the developer is a business entity) is in full compliance with the Area Development Agreement and all Franchise Agreements. The proposed transferee and their owners must also be individuals of good moral character and meet the franchisor's standards for developers of EYB Concepts.
If the transfer involves the development rights granted under the Area Development Agreement or a controlling interest in the developer, several conditions must be met. First, the transferee must have sufficient business experience, aptitude, and financial resources to operate the developer's business and develop the Development Area. They must either already own an EYB Concept or be acquiring one or more in association with the transfer.
Second, the developer must pay all amounts owed to Bananas Smoothies Frozen Yogurt or its affiliates and submit all required reports and statements under the Area Development Agreement, any Franchise Agreement, or any other agreement between the developer (or an affiliate) and the franchisor (or its affiliates). Third, the transferee and/or their personnel must agree to complete the franchisor's initial training program to the franchisor's satisfaction. Finally, the transferee must meet the franchisor's current owner criteria and agree to be bound by and expressly assume all the terms and conditions of the Area Development Agreement for the remainder of its term.
These conditions ensure that any transfer of development rights or controlling interest maintains the standards and obligations of the original agreement, protecting the Bananas Smoothies Frozen Yogurt brand and the interests of other franchisees.