Are the Development Fees the same for all similarly situated Buff City Soap franchisees?
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.
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 Fees are the same for all similarly situated franchisees. The FDD states that when a franchisee signs a Development Agreement, they must agree to develop a minimum of 2 Makeries. The non-refundable 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 2 Makeries. Therefore, 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. However, when signing each additional Franchise Agreement 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 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.
This standardized fee structure provides transparency and consistency for prospective Buff City Soap multi-unit franchisees. However, it's important to note that while the development fee itself is uniform, the terms of the franchise agreement for subsequent locations may change, potentially impacting the overall investment and operational requirements. Prospective franchisees should carefully review the then-current form of the franchise agreement before committing to developing additional locations.