When are the utility deposits due for a Bananas Smoothies Frozen Yogurt franchise?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
rozen Yogurt concept**
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|
| Franchise Fee 1 | $22,000 | Lump sum (unless Deposit Agreement) | Upon signing the Franchise Agreement | Us |
| Equipment 2 | $70,000 - $125,000 | As billed | As ordered | Suppliers |
| Signs 3 | $5,000 - $12,000 | As billed | As ordered | Suppliers |
| Real Estate 4 | (Note 4) | As required | As required | Sellers or Landlord |
| Building Construction 5 | $70,000 - $175,000 | As billed | As incurred | Contractors Sub Contractors |
| Insurance 6 | $2,000 –$5,000 | As billed | As required | Insurer |
| Opening | $1,500 –$7,000 | Vendors' | Vendors' Terms | Approved |
| Inventory 7 | Terms | Suppliers | ||
| Utility | $2,000 | As arranged | As incurred | Utility Companies |
| Deposits 8 | ||||
| Business | $1,000 – | Lump sum | Before commencing | Governmental |
| Licenses | $4,000 | business | Authorities | |
| Travel, Lodging and Meals for Initial Trainin |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 19–31)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt FDD, utility deposits are due 'as incurred' and are arranged with utility companies. The FDD estimates these deposits to be around $2,000. This means a franchisee will need to pay the utility companies directly when the deposits are required, likely before the commencement of operations and as services are established.
This is a fairly standard practice in franchising, as utility deposits are typically required to initiate services like electricity, water, and gas. The timing can vary based on the utility company's policies and the specific location of the Bananas Smoothies Frozen Yogurt franchise. Franchisees should budget for this expense as part of their initial investment and be prepared to make these payments before opening their doors.
It's important for prospective Bananas Smoothies Frozen Yogurt franchisees to contact local utility providers early in the setup process to understand their specific deposit requirements and payment schedules. This will help in accurately forecasting the initial investment and avoiding any delays in starting operations. The franchisee should also confirm with Bananas Smoothies Frozen Yogurt whether the estimated $2,000 is typical for new locations or if it varies significantly by region or store type.