What is the development fee for the first Buff City Soap Makery under a Development Agreement?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
velopment fees, other fees or other costs paid to us or to third parties. We do not provide any guarantees for any financing provided to you by third parties.
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- The initial franchise fee paid by you and other similarly situated Franchisees will be the same and is nonrefundable.
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- When you sign a Development Agreement, you must agree to develop a minimum of 2 Makeries and pay us a non-refundable development fee equal to 100% of the initial franchise fee for the first BCS Makery to be developed ($50,000) and 50% of the initial franchise fee for each additional BCS Makery ($25,000 if developing 2 Makeries) to be developed under the Development Agreement. The total Development Fee due for 2 Makeries is $75,000. When you sign the Franchise Agreement for your first BCS Makery, we will credit a portion of the development fee payment to satisfy the initial franchise fee due under the first Franchise Agreement. When you sign each additional Franchise Agreement under the Development Agreement, you will sign the then-current form of franchise agreement that we offer, which may contain materially different terms. In addition, you will pay us the balance due for the initial franchise fee
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 24–28)
What This Means (2025 FDD)
According to Buff City Soap's 2025 Franchise Disclosure Document, if you sign a Development Agreement, you must develop a minimum of two Buff City Soap Makeries. The development fee is equal to 100% of the initial franchise fee for the first Makery, which amounts to $50,000. For each additional Makery to be developed under the Development Agreement, the fee is 50% of the initial franchise fee, which is $25,000 if developing two Makeries. The total development fee for two Makeries is $75,000. This fee is non-refundable.
When you sign the Franchise Agreement for your first Buff City Soap location, a portion of the development fee payment will be credited to satisfy the initial franchise fee due under the first Franchise Agreement. However, for each additional Franchise Agreement signed under the Development Agreement, you will sign the then-current form of the franchise agreement, which may contain materially different terms than the original.
In addition to the development fee, you will also be responsible for paying the balance due for the initial franchise fee under each applicable Franchise Agreement. For example, if developing two Makeries, this would be $25,000, representing the initial franchise fee minus the applicable portion of the development fee. It is important to note that the development fee is uniformly imposed and non-refundable, similar to the initial franchise fee.