How must the Brand Fund Contribution be paid to Buff City Soap?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
d non-refundable when paid.
OTHER FEES
| 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. |
Source: Item 5 — INITIAL FEES (FDD pages 15–23)
What This Means (2025 FDD)
According to Buff City Soap's 2025 Franchise Disclosure Document, the Brand Fund Contribution, which is 2% of Net Sales, must be paid via electronic funds transfer. These payments are made monthly, based on the prior calendar month's Net Sales, and are due on the 15th of each month. Buff City Soap also has 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.
This means that as a Buff City Soap franchisee, you'll need to ensure you have systems in place to accurately track your Net Sales and make timely electronic payments to avoid any late fees or disruptions. The Brand Fund Contribution is used to support the overall brand and marketing efforts of Buff City Soap.
It's important to note that while the Brand Fund Contribution is initially set at 2% of Net Sales, Buff City Soap reserves the right to increase this contribution with 60 days' written notice. However, the combined total of the Brand Fund Contribution and Local Marketing Expenditure requirement will not exceed 4% of Net Sales during the initial term of the Franchise Agreement. This provides some level of predictability and limits the potential financial burden on franchisees.