Is the development fee paid to Buff City Soap refundable?
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, the development fee is non-refundable. When signing a Development Agreement with Buff City Soap, the franchisee must agree to develop a minimum of two Makeries. The development fee is equal to 100% of the initial franchise fee for the first Buff City Soap Makery, which is $50,000, and 50% of the initial franchise fee for each additional Makery, which is $25,000 if developing two Makeries. Therefore, the total development fee for two Makeries is $75,000.
Buff City Soap states that the development fee paid by the franchisee and other similarly situated franchisees will be the same and is non-refundable. However, when the franchisee signs the Franchise Agreement for their first Buff City Soap Makery, a portion of the development fee payment will be credited to satisfy the initial franchise fee due under the first Franchise Agreement.
In addition, when signing each additional Franchise Agreement under the Development Agreement, the franchisee will sign the then-current form of franchise agreement that Buff City Soap offers, which may contain materially different terms. The franchisee will also pay the balance due for the initial franchise fee due under each applicable Franchise Agreement ($25,000 if developing two Makeries), which will be the initial franchise fee minus the applicable portion of the development fee.