What is the current monthly Loyalty Program Fee for a Buff City Soap franchise?
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. |
Source: Item 5 — INITIAL FEES (FDD pages 15–23)
What This Means (2025 FDD)
According to Buff City Soap's 2025 Franchise Disclosure Document, franchisees must pay a monthly Loyalty Program Fee. The current fee is $119 per month. This fee is invoiced monthly along with the Technology Fee and must be paid via electronic funds transfer. Buff City Soap specifies that it currently does not charge additional fees to administer the loyalty program beyond the licensed cost of the program, but retains the right to charge additional fees in the future.
This means that a Buff City Soap franchisee will need to budget $119 each month for the Loyalty Program Fee, in addition to other ongoing fees like the Royalty Fee, Brand Fund Contribution, and Technology Fee. It is important to note that while the fee is currently fixed at $119, Buff City Soap reserves the right to implement additional administrative charges for the loyalty program in the future.
Franchisees should be aware that this fee is paid to a third-party supplier, indicating that Buff City Soap is outsourcing the loyalty program management. This arrangement could have implications for the quality and responsiveness of the loyalty program, as the franchisee is dependent on both Buff City Soap and the third-party vendor. Prospective franchisees should inquire about the terms of the agreement with the third-party supplier and any potential risks associated with this arrangement.
It is common for franchises to have technology and loyalty program fees, but the specifics can vary widely. Some franchises may include these services within the royalty fee, while others charge separate fees. Understanding the breakdown of these costs is crucial for assessing the overall financial viability of a Buff City Soap franchise.