What constitutes a 'Competitive Business' that a Buff City Soap Developer's Designated Principal is restricted from engaging in?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
ESIGNATED PRINCIPAL** By: By: Name: Name:
Date:
Title: Date:
ATTACHMENT E-1 TO CONFIDENTIALITY AND NON COMPETE AGREEMENT
DEFINITIONS
- "ADA" means the Area Development Agreement between Franchisor and Developer.
- "Affiliate" means, with respect to a named Person, any Person that is controlled by, controlling or under common control with the named Person.
- "Agreement" means this Confidentiality and Non-Compete Agreement between Developer and Designated Principal.
- "Competitive Business" means any retail establishment that, as determined by Franchisor, is the same as or substantially similar to the Makeries, including, without limitation, any personal body care product retail establishment or chain of retail establishments that feature products free of artificial detergents, surfactants, dyes, or
Source: Item 18 — PUBLIC ANNOUNCEMENTS. (FDD pages 186–204)
What This Means (2025 FDD)
According to Buff City Soap's 2025 Franchise Disclosure Document, a 'Competitive Business' is defined in Attachment E-1 to the Confidentiality and Non-Compete Agreement. This agreement restricts a Developer's Designated Principal from engaging in certain business activities that could compete with Buff City Soap.
Specifically, a 'Competitive Business' includes any retail establishment that Buff City Soap determines to be the same as or substantially similar to its Makeries (Buff City Soap shops). This encompasses personal body care product retail establishments or chains that feature products free of artificial detergents, surfactants, dyes, or harsh chemicals.
Additionally, any retail establishment where soaps, lotions, bath bombs, and similar facial, body, and hair care products collectively account for 25% or more of its average monthly gross sales during the preceding 12 months (or the number of full calendar months of operation if the establishment has been operating for less than 12 months) is also considered a 'Competitive Business'. This definition ensures that the Designated Principal cannot be involved in businesses that directly compete with Buff City Soap's core product offerings and business model.