What is the 'Development Term' in the context of a Buff City Soap Development Agreement?

According to Buff City Soap's 2025 Franchise Disclosure Document, the Development Term, as outlined in Section 3(a) and Exhibit A of the Development Agreement, concludes either on the expiration date specified in the Summary Page of the Development Agreement or when the developer has opened the required cumulative number of Makeries within the designated territory. This means a prospective Buff City Soap developer's rights to develop new locations are limited to a specific time frame or until they fulfill their agreed-upon development schedule.

This arrangement is typical in development agreements, as it motivates developers to open locations promptly and ensures the franchisor's expansion goals are met. The expiration of the Development Term does not necessarily affect any existing Franchise Agreements for opened locations, but it does mean the developer loses the exclusive right to open new Buff City Soap stores in the territory.

It is important for potential Buff City Soap developers to carefully review the Summary Page of the Development Agreement to understand the specific expiration date and the required number of Makeries to be opened. Understanding these terms is crucial for planning and executing the development schedule effectively. Since the Development Agreement cannot be renewed or extended, developers need to be aware of the implications of not meeting the development obligations within the initial term.