How are additional training fees paid to Buff City Soap?

Question

Accepted Answer

| Type of Fee (See Note 13)                | Amount*                                       | Due Date                                                                                                                       | Remarks                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|---------------------------------------------|-----------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Royalty Fee (See Note 1) | 6% of Net Sales | Currently payable monthly based on the prior calendar month's Net Sales and due on the 15th of each month | Payment must be made via electronic funds transfer. We reserve the right to modify the due date to every Friday for the preceding week commencing Monday and closing Sunday upon 60 days' prior written notice. |
| Brand Fund Contribution (See Note 2) | 2% of Net Sales | Currently payable monthly based on the prior calendar month's Net Sales and due on the 15th of each month | Payment must be made via electronic funds transfer. We reserve the right to increase the Brand Fund Contribution upon 60 days' written notice to you, but the Brand Fund Contribution, when combined with the Local Marketing Expenditure requirement, will not exceed 4% of Net Sales for the initial term of your Franchise Agreement. We have the right to modify the due date to every Friday based on Net Sales for the preceding week (commencing on Monday and closing on Sunday) upon 60 days prior written notice to you. |
| Local Marketing Expenditure (See Note 2) | 1% of Net Sales | Payable to vendors as incurred | We have the right to request copies of documentation evidencing your compliance with the Local Marketing Expenditure. |
| Technology Fee (See Note 3) | The monthly minimum is currently \$500. | Monthly with the Royalty Fee payment | Payment must be made via electronic funds transfer. We reserve the right to modify the Technology Fee upon 60 days' prior written notice to you. We have the right to modify the due date to every Friday to coincide with payment of the Royalty Fee and Brand Fund Contribution. upon 60 days prior written notice to Franchisee. |
| Type of Fee | Amount* | Due Date | Remarks |
| (See Note 13) |  |  |  |
| Technology Maintenance, Updates and Upgrades | \$1,000 annually for hardware and \$1,000 biannually for software | Payable to vendors as incurred | This is our estimate of the total annual/biannual cost to you of optional or required maintenance, updating or upgrading of hardware and software. This fee does not cover credit card processing fees. |
| Loyalty Program Fees (See Note 4) | Currently \$119 per month. We do not currently charge fees to administer the loyalty program above the licensed cost of the program but reserve the right to charge a fee in the future. | Monthly with the Technology Fee payment | Payment is currently made by us to a third-party supplier and must be made via electronic funds transfer. |
| Gift Card Program (See Note 5) | Issuer expenses multiplied by 105%. | Within 20 days after invoice date. | Service Fees under the Gift Card Program Agreement (Exhibit K to the Franchise Agreement) shall be payable as follows: for each measurement period, which shall be at least quarterly, Issuer shall provide to us an estimate of the Issuer Expenses and other components of the formula by which the Service Fees are determined for the measurement period just ended. |
| COMO (Loyalty Services and Text Messaging Program) | Currently \$499 per month | Monthly with the Royalty Fee payment | You may use the COMO communications tool for SMS texting with customers, but you are currently not required to do so. The fee for COMO is payable to us and passed through to the vendor. |
| Appointedd | Currently \$21.97 per month | Monthly with the Royalty Fee payment | You are required to use the Appointedd® tool for your online event scheduling, calendaring, and booking activities. This application allows end users to view Makery event availability and manage bookings online. The fee for Appointedd is payable to us and passed through to the vendor. |
| Type of Fee | Amount* | Due Date | Remarks |
| (See Note 13) |  |  |  |
| Woven | Currently \$36 per month | Monthly with the Technology Fee payment | You are required to use the Woven® tool for your operations management. The fee for Woven is payable to us and passed through to the vendor. You must execute the Woven Acknowledgment attached as Exhibit M to the Franchise Agreement. |
| Inspection and Testing for Unapproved Suppliers, Products or Equipment | Out-of-pocket costs and expenses we incur for any inspection or testing. | Upon invoice | We reserve the right to invoice you for our out-of-pocket costs and expenses we incur for any inspection or testing. Since 2018 we have not had the necessity to assess this fee. |
| Regional Cooperative Fee | If established, up to 2% of Net Sales | Weekly with each Royalty Fee payment | Payable if we establish and collect the fees for a regional marketing or advertising cooperative |
| Additional Training Fees (See Note 6) | \$500 per day per trainer plus trainer's travel, lodging, meal and incidental expenses for additional initial training requested by you; up to \$2,500 for replacement manager training; up to \$1,500 for regional meeting training and separate training at the Annual Conference; up to \$5,000 if you fail to demonstrate competency of pre training materials such that you are required by us to repeat training | As incurred | We may provide additional employee training at your Franchised Business. We may change this rate at any time in the Manuals. Replacement managers must attend training before starting work. |
| Type of Fee | Amount*

Source: Item 5 — INITIAL FEES (FDD pages 15–23)

How are additional training fees paid to Buff City Soap?

Answer from 2025 FDD Document

What This Means (2025 FDD)

Type of Fee (See Note 13)	Amount*	Due Date	Remarks
Royalty Fee (See Note 1)	6% of Net Sales	Currently payable monthly based on the prior calendar month's Net Sales and due on the 15th of each month	Payment must be made via electronic funds transfer. We reserve the right to modify the due date to every Friday for the preceding week commencing Monday and closing Sunday upon 60 days' prior written notice.
Brand Fund Contribution (See Note 2)	2% of Net Sales	Currently payable monthly based on the prior calendar month's Net Sales and due on the 15th of each month	Payment must be made via electronic funds transfer. We reserve the right to increase the Brand Fund Contribution upon 60 days' written notice to you, but the Brand Fund Contribution, when combined with the Local Marketing Expenditure requirement, will not exceed 4% of Net Sales for the initial term of your Franchise Agreement. We have the right to modify the due date to every Friday based on Net Sales for the preceding week (commencing on Monday and closing on Sunday) upon 60 days prior written notice to you.
Local Marketing Expenditure (See Note 2)	1% of Net Sales	Payable to vendors as incurred	We have the right to request copies of documentation evidencing your compliance with the Local Marketing Expenditure.
Technology Fee (See Note 3)	The monthly minimum is currently $500.	Monthly with the Royalty Fee payment	Payment must be made via electronic funds transfer. We reserve the right to modify the Technology Fee upon 60 days' prior written notice to you. We have the right to modify the due date to every Friday to coincide with payment of the Royalty Fee and Brand Fund Contribution. upon 60 days prior written notice to Franchisee.
Type of Fee	Amount*	Due Date	Remarks
(See Note 13)
Technology Maintenance, Updates and Upgrades	$1,000 annually for hardware and $1,000 biannually for software	Payable to vendors as incurred	This is our estimate of the total annual/biannual cost to you of optional or required maintenance, updating or upgrading of hardware and software. This fee does not cover credit card processing fees.
Loyalty Program Fees (See Note 4)	Currently $119 per month. We do not currently charge fees to administer the loyalty program above the licensed cost of the program but reserve the right to charge a fee in the future.	Monthly with the Technology Fee payment	Payment is currently made by us to a third-party supplier and must be made via electronic funds transfer.
Gift Card Program (See Note 5)	Issuer expenses multiplied by 105%.	Within 20 days after invoice date.	Service Fees under the Gift Card Program Agreement (Exhibit K to the Franchise Agreement) shall be payable as follows: for each measurement period, which shall be at least quarterly, Issuer shall provide to us an estimate of the Issuer Expenses and other components of the formula by which the Service Fees are determined for the measurement period just ended.
COMO (Loyalty Services and Text Messaging Program)	Currently $499 per month	Monthly with the Royalty Fee payment	You may use the COMO communications tool for SMS texting with customers, but you are currently not required to do so. The fee for COMO is payable to us and passed through to the vendor.
Appointedd	Currently $21.97 per month	Monthly with the Royalty Fee payment	You are required to use the Appointedd® tool for your online event scheduling, calendaring, and booking activities. This application allows end users to view Makery event availability and manage bookings online. The fee for Appointedd is payable to us and passed through to the vendor.
Type of Fee	Amount*	Due Date	Remarks
(See Note 13)
Woven	Currently $36 per month	Monthly with the Technology Fee payment	You are required to use the Woven® tool for your operations management. The fee for Woven is payable to us and passed through to the vendor. You must execute the Woven Acknowledgment attached as Exhibit M to the Franchise Agreement.
Inspection and Testing for Unapproved Suppliers, Products or Equipment	Out-of-pocket costs and expenses we incur for any inspection or testing.	Upon invoice	We reserve the right to invoice you for our out-of-pocket costs and expenses we incur for any inspection or testing. Since 2018 we have not had the necessity to assess this fee.
Regional Cooperative Fee	If established, up to 2% of Net Sales	Weekly with each Royalty Fee payment	Payable if we establish and collect the fees for a regional marketing or advertising cooperative
Additional Training Fees (See Note 6)	$500 per day per trainer plus trainer's travel, lodging, meal and incidental expenses for additional initial training requested by you; up to $2,500 for replacement manager training; up to $1,500 for regional meeting training and separate training at the Annual Conference; up to $5,000 if you fail to demonstrate competency of pre training materials such that you are required by us to repeat training	As incurred	We may provide additional employee training at your Franchised Business. We may change this rate at any time in the Manuals. Replacement managers must attend training before starting work.
Type of Fee	Amount*