How does Buff City Soap define a 'Competitive Business' in relation to its Makeries?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
- (k) "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).
A Competitive Business does not include (i) other businesses that are licensed by Franchisor or any of its Affiliates; or (ii) Franchisee's Existing Brands.
Source: Item 23 — Receipts (FDD pages 69–186)
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 Buff City Soap Makeries. This includes, but is not limited to, any personal body care product retail establishment or chain that features 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, or if the establishment has been operating for less than 12 months, the number of full calendar months of operation.
However, the definition of 'Competitive Business' specifically excludes (i) other businesses that are licensed by Buff City Soap or any of its Affiliates, and (ii) the franchisee's existing brands. This means that franchisees are not restricted from owning or operating other businesses outside of the Buff City Soap system, as long as those businesses are not substantially similar to a Buff City Soap Makery and do not directly compete with it as defined in the Franchise Agreement.