Does Buff City Soap anticipate that franchisees will lease or build their location?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
We anticipate that you will lease rather than build your location.
We therefore have not included any costs for land, building construction or related costs in our estimates.
We will provide you with our criteria for sites for BCS Makeries and may conduct an on-site evaluation, at our option, in connection with our review and approval of the site that you select for your first BCS Makery location.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 24–28)
What This Means (2025 FDD)
According to the 2025 Buff City Soap FDD, the company anticipates that franchisees will lease their location rather than build it. As a result, the estimated initial investment does not include costs for land, building construction, or related expenses. The FDD indicates that Buff City Soap will provide franchisees with site selection criteria and may conduct an on-site evaluation for the first Makery location.
The estimated costs provided in the FDD are for building out an existing space to meet Buff City Soap's image and décor requirements. These locations typically range from 1,500 to 4,000 square feet and are situated in strip centers, town squares, or regional retail development centers. The cost per square foot for leasing commercial property is not included in the estimates, as it varies based on location, size, and local market conditions.
Prospective franchisees should be aware that lease terms will likely include base rent, additional rent based on net sales, common area maintenance and marketing charges, and a share of property taxes, insurance, and other costs. The lease must also accommodate bulk deliveries of product raw materials and on-premises mixing and finishing of products. Depending on market costs and credit, franchisees can expect variations in rent rates, terms, and conditions. The FDD estimates rental expenses to be between $40,000 and $200,000, including two months' rent for the deposit and commercial lease parking deposits.