Is the Brand Fund Contribution paid to Buff City Soap refundable?

According to the 2025 FDD, the Brand Fund contributions to Buff City Soap are generally non-refundable. However, in the event that Buff City Soap terminates the Brand Fund, any unspent monies at the time of termination will be distributed to franchisees. The distribution will be proportional to each franchisee's contribution to the Brand Fund during the three-month period preceding the termination date.

This means that while franchisees cannot typically get a refund of their Brand Fund contributions, they may receive a portion of the unspent funds if the Brand Fund is terminated. This is a conditional benefit, as it depends on the termination of the Brand Fund and the availability of unspent monies at that time.

Buff City Soap retains the right to terminate the Brand Fund, indicating that this is not just a theoretical possibility. The FDD also states that Buff City Soap is not obligated to ensure that the expenditures from the Brand Fund in any area are proportional to the contributions from the franchisees in that area. This means that a franchisee's contributions might not directly benefit their specific location or market.

Franchisees should be aware that the Brand Fund is intended to maximize recognition of the Buff City Soap brand generally, and there is no guarantee of direct or proportionate benefit to individual locations. The distribution of unspent funds upon termination is a potential, but not guaranteed, return of contributions.