factual

What costs and responsibilities does a Buff City Soap franchisee assume regarding the Premises?

Buff_City_Soap Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisee assumes all cost, liability, expense and responsibility for locating, obtaining and developing the Premises for the Makery within the Designated Area and for finish-out or renovation and equipping the Makery at the Premises.

  • (1) Franchisee is responsible for obtaining all zoning and regulatory approvals which may be required by Applicable Law or which may be necessary as a result of any restrictive covenants related to the Premises. Prior to beginning the finish-out or renovation of the Premises, Franchisee will obtain all permits, licenses and certifications required for the lawful construction or remodeling and operation of the Makery and submit to Franchisor a certificate of insurance evidencing that the coverage specified in Section 15 is in full force and effect and that all required approvals, clearances, permits and certifications have been obtained. Upon Franchisor's request, Franchisee will provide to Franchisor additional copies of Franchisee's insurance policies and certificates of insurance and copies of all such approvals, clearances, permits and certifications.
  • (2) Franchisor will furnish to Franchisee prototypical plans and specifications for a Buff City Soap makery, including requirements for dimensions, design, image, interior layout, décor, fixtures, equipment, signs, furnishings, storefront and color scheme. It will be Franchisee's responsibility to have prepared all required architectural, engineering and design plans to suit the shape and dimensions of the Premises, and Franchisee must ensure that these plans and specifications comply with applicable ordinances, building codes and permit requirements, and with Lease requirements and restrictions.
  • (3) Franchisee will obtain services as needed only from registered architects, registered engineers, and professional and licensed contractors that meet the Standards for the development, construction and equipping of the Makery. To the extent Franchisee desires to obtain services from an architect, engineer or contractor not already approved by Franchisor, Franchisee will submit to Franchisor the information and documentation set forth in the Manuals regarding the training, experience and financial responsibility of the registered architects, registered engineers and professional and licensed contractors whom Franchisee desires to retain to prepare the plans and construct the Makery, along with copies of all proposed contracts with such architects, engineers and contractors, and any other information requested by Franchisor. In connection with Franchisor's review of any such architect, engineer or contractor, Franchisee will pay Franchisor's costs and expenses in connection with the same. Franchisee will not commence construction of the Makery until Franchisor has consented to Franchisee's use of the registered architects, registered engineers and professional and licensed contractors who will prepare the plans and construct the Makery.

Franchisee must at all times maintain the interior and exterior of the Makery Premises and the surrounding area in good condition and repair and comply with the Standards for cleanliness, organization and sanitation of the Makery.

Franchisee is solely responsible for maintenance, repair and replacement where necessary to maintain the Makery in accordance with the Standards and for any liabilities arising from Franchisee's failure to comply with the terms and conditions of this Section 7(b).

Franchisee must, at its sole cost and expense, fully comply with any changes made to the System by Franchisor within a reasonable time.

Franchisee will make such capital improvement or modifications necessary to modernize, redecorate and upgrade the Makery, including without limitation the Operating Assets in accordance with Franchisor's then-current Standards, provided that (1) the aggregate amount of capital improvements, modifications and upgrades to the Makery (including those upgrades required in Sections 8(b) and 8(c) of this Agreement) required by Franchisor will not exceed $500,000 during the Initial Term; and (2) Franchisee will not be required to make such capital improvements or modifications more frequently than every 5 years.

  • (b) Premises. This Agreement does not grant to Franchisee the right or license to operate the Makery or to offer or sell any Products at or from any location other than the Premises.
  • (c) Relocation. Franchisee will not relocate the Makery without the express prior written consent of Franchisor.

Source: Item 23 — Receipts (FDD pages 69–186)

What This Means (2025 FDD)

According to Buff City Soap's 2025 Franchise Disclosure Document, the franchisee bears significant responsibilities and costs related to securing, developing, and maintaining the premises of their Makery. The franchisee is responsible for locating, obtaining, and developing the premises within the designated area, including all associated costs, liabilities, and expenses for finish-out or renovation and equipping the Makery. This encompasses obtaining all necessary zoning and regulatory approvals, permits, licenses, and certifications required for lawful construction, remodeling, and operation. Prior to commencing any work on the premises, the franchisee must provide Buff City Soap with a certificate of insurance and evidence of all required approvals.

Buff City Soap provides prototypical plans and specifications for the Makery, including requirements for dimensions, design, image, interior layout, décor, fixtures, equipment, signs, furnishings, storefront, and color scheme. However, the franchisee is responsible for preparing all required architectural, engineering, and design plans to suit the specific shape and dimensions of the premises, ensuring compliance with applicable ordinances, building codes, permit requirements, and lease restrictions. The franchisee must engage registered architects, registered engineers, and professional and licensed contractors that meet Buff City Soap's standards for development, construction, and equipping of the Makery. If the franchisee wishes to use an architect, engineer, or contractor not already approved by Buff City Soap, they must submit detailed information about their qualifications and financial responsibility to Buff City Soap for approval and cover Buff City Soap's associated costs and expenses for this review.

The franchisee is obligated to maintain both the interior and exterior of the Makery premises and the surrounding area in good condition and repair, adhering to Buff City Soap's standards for cleanliness, organization, and sanitation. They are solely responsible for all maintenance, repairs, and replacements necessary to keep the Makery in accordance with these standards and for any liabilities arising from their failure to do so. Additionally, the franchisee must comply with any changes made to the Buff City Soap system by the franchisor, including capital improvements or modifications to modernize, redecorate, and upgrade the Makery, although such required upgrades are capped at $500,000 during the initial term and cannot be required more frequently than every 5 years. The franchisee cannot relocate the Makery without prior written consent from Buff City Soap and must operate the Makery only at the approved premises within the designated area.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.