Is the Development Fee paid to Buff City Soap by all similarly situated Franchisees the same?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
contain materially different terms. In addition, you will pay us the balance due for the initial franchise fee due under each applicable Franchise Agreement ($25,000 if developing 2 Makeries), which will be the initial franchise fee minus the applicable portion of the development fee. The Development Fee paid by you and other similarly situated Franchisees will be the same and is non-refundable.
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- These estimated costs are to build out an existing building or space to meet the image and décor we require. BCS Makery locations are between approximately 1,500 and 4,000 sq. ft. Typical BCS Makeries are located in strip centers, town squares, or other regional retail development centers within metropolitan or micropolitan areas. The cost per square foot of leasing commercial property will vary depending on location, size, local market conditions and other factors, and are not included in these estimates. Your rent will likely include base rent, additional rent related to the Net Sales of the BCS Makery, common area maintenance and marketing charges, and proportionate shares of property taxes, insurance and other costs. Your BCS Makery must be able to accept and store bulk deliveries of product raw materials. The lease terms must also allow for on-premises mixing and finishing of our products in the Soap Makery located in the public space of the Makery.
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 paid by franchisees is the same for similarly situated franchisees. When signing a Development Agreement, a franchisee must agree to develop a minimum of 2 Makeries. The development fee is non-refundable and is equal to 100% of the initial franchise fee ($50,000) for the first Buff City Soap Makery and 50% of the initial franchise fee ($25,000) for each additional Makery. The total Development Fee due for 2 Makeries is $75,000.
When a 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. For each additional Franchise Agreement signed under the Development Agreement, the franchisee will sign the then-current form of franchise agreement, which may contain materially different terms. In addition, the franchisee will pay the balance due for the initial franchise fee under each applicable Franchise Agreement ($25,000 if developing 2 Makeries), which will be the initial franchise fee minus the applicable portion of the development fee.
This means that all franchisees who enter into a development agreement with Buff City Soap under similar conditions will pay the same development fee. This promotes fairness and transparency in the franchise system. However, it's important to note that the specific terms and conditions of the Franchise Agreement may change over time, so franchisees should carefully review the current form of the agreement before signing.