Does this addendum to the Buff City Soap Franchise Agreement affect the royalties paid to Buff City Soap?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
THIS ADDENDUM is made and entered into on, 20 (the "Effective Date") by and between BUFF CITY SOAP FRANCHISING, LLC, a limited liability company formed under the laws of the State of Delaware, with its principal business address at 5294 Beltline Road, Suite 100, Dallas, Texas 75254, ("we," "us,"' or, "our"), and , a [corporation, limited liability company, general partnership, or limited partnership] formed under the laws of the State of, [or a sole proprietorship] with its principal business address at ("you" or "your"). 1. We and you are parties to that certain Franchise Agreement dated BACKGROUND. , 20 (the "Franchise Agreement") that has been signed concurrently with the signing of this Addendum. This Addendum is annexed to and forms part of the Franchise Agreement. This Addendum is being signed because (a) you are domiciled in South Dakota and the Buff City Soap Makery that you will operate under the Franchise Agreement will be located in South Dakota; and/or (b) any of the offering or sales activity relating to the Franchise Agreement occurred in South Dakota. 2. Section 3.1 of the Franchise Agreement is amended to add the following: "The payment of the Initial Franchise Fee is not due to Franchisor until Franchisor has completed all of its pre-opening requirements to Franchisee and Franchisee is operational." 3. No statement, questionnaire or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of: (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on behalf of the Franchisor. This provision supersedes any other term of any document executed in connection with the franchise. IN WITNESS WHEREOF, the parties have executed and delivered this Addendum on the dates noted below, to be effective as of the Effective Date. BUFF CITY SOAP FRANCHISING, LLC []## ADDENDUM TO THE BUFF CITY SOAP FRANCHISING, LLC FRANCHISE AGREEMENT FOR USE IN VIRGINIA
Source: Item 6 — , Securities Offering Fee, in the amount column is revised to state the following: (FDD pages 216–303)
What This Means (2025 FDD)
The provided excerpts from the 2025 Buff City Soap Franchise Disclosure Document include addenda and riders to the franchise agreement that address specific state laws and modifications to certain terms. However, none of the addenda presented in the excerpts explicitly mention changes to the royalty fees paid to Buff City Soap. The addenda primarily focus on issues such as waivers, governing law, venue, and the timing of initial franchise fee payments in states like South Dakota, Virginia, Maryland, Hawaii, Illinois, North Dakota, and Minnesota.
For example, the addendum for Illinois addresses the deferral of initial franchise fees until the franchisor meets its obligations and the franchisee commences business. Similarly, the Hawaii rider discusses the deferral of initial fees until the store opens. The North Dakota addendum modifies a clause related to which party covers legal costs in enforcement actions. These adjustments are specific to the legal requirements and financial assurance needs of those states.
Since the provided excerpts do not contain information about royalty fees, it's important for a prospective Buff City Soap franchisee to carefully review the entire Franchise Agreement and all its addenda to understand the complete fee structure. To confirm whether any addendum affects royalty payments, the franchisee should ask the franchisor directly about any modifications to royalty fees and request specific documentation.