factual

How does Buff City Soap define a 'Competitive Business'?

Buff_City_Soap Franchise · 2025 FDD

Answer from 2025 FDD Document

  • "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 harsh chemicals, or any retail establishment that has soaps, lotions, bath bombs and similar facial, body and hair care products collectively accounting for 25% or more of its average monthly gross sales for the retail establishment during the preceding 12 months (or, if the retail establishment has operated less than 12 months, the number of full calendar months of operation).

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 as any retail establishment that the Franchisor determines to be the same as or substantially similar to a Buff City Soap 'Makery'. This includes, without limitation, any personal body care product retail establishment or chain of retail establishments that feature products free of artificial detergents, surfactants, dyes, or harsh chemicals.

Additionally, a retail establishment is considered a 'Competitive Business' if soaps, lotions, bath bombs, and similar facial, body, and hair care products collectively account for 25% or more of its average monthly gross sales. This calculation is based on the preceding 12 months of sales for the retail establishment, or if the establishment has been operating for less than 12 months, the number of full calendar months of operation.

This definition is important for prospective franchisees as it outlines the types of businesses that could be considered a conflict of interest. It also affects the enforcement of non-compete agreements. Franchisees should carefully consider this definition and how it might impact their ability to engage in other business ventures, either during the term of their franchise agreement or after its termination.

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.