Who has the discretion to direct activities and programs funded by the Buff City Soap Brand Fund?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
We may spend on behalf of the Brand Fund, in any fiscal year, an amount that is greater or less than the aggregate contribution of all BCS Makeries to the Brand Fund in that year, and the Brand Fund may borrow from us or others to cover deficits or may invest any surplus for future use. Any monies in the Brand Fund not spent at the end of each fiscal year will remain in the Brand Fund, provided that amounts contributed to the Brand Fund may be used to pay taxes associated with unspent amounts on deposit in the Brand Fund. We will have the sole and exclusive discretion to direct all activities and programs funded by the Brand Fund. The Brand Fund will not be separately audited. We will, upon your written request (but not more than once annually), provide a copy of our unaudited annual statement of monies collected and costs incurred by the Brand Fund. We have no obligation to ensure that Brand Fund expenditures in or affecting any geographic area are proportionate or equivalent to the Brand Fund Contributions made by franchised BCS Makeries in that geographic area, nor are we obligated to ensure that your Makery or any other BCS Makery will benefit directly or in proportion to your or its Brand Fund contribution, or that all BCS Makeries operated by us or any of our affiliates will pay the same Brand Fund Contribution. As of the issuance date of this disclosure document, the BCS Makeries operated by us and/or our affiliates do not contribute to the Brand Fund. We may terminate and reinstate the Brand Fund at any time. If the Brand Fund is terminated, all unspent monies will be distributed to franchisees operating a BCS Makery in proportion to their respective contributions to the Brand Fund accrued during the preceding three-month period. (Franchise Agreement Section 10(a)).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 35–42)
What This Means (2025 FDD)
According to the 2025 Buff City Soap Franchise Disclosure Document, Buff City Soap has the sole and exclusive discretion to direct all activities and programs funded by the Brand Fund. This means that Buff City Soap decides how the money in the Brand Fund is spent. The Brand Fund is used for marketing, advertising, and related programs to promote the Buff City Soap brand.
Buff City Soap may spend more or less than the total contributions from all Buff City Soap Makeries in any given year. The Brand Fund can also borrow money or invest any surplus for future use. Any unspent money in the Brand Fund at the end of the fiscal year will remain in the fund; however, these amounts may be used to pay taxes associated with the unspent funds. Franchisees can request a copy of Buff City Soap's unaudited annual statement of monies collected and costs incurred by the Brand Fund, but this can only be done once per year.
Buff City Soap is not obligated to ensure that Brand Fund expenditures in any geographic area are proportionate to the contributions made by franchisees in that area. Additionally, Buff City Soap doesn't have to ensure that any particular Makery benefits directly or in proportion to its contribution, and BCS Makeries operated by Buff City Soap or its affiliates do not contribute to the Brand Fund as of the issuance date of the FDD. Buff City Soap can terminate and reinstate the Brand Fund at any time. If the Brand Fund is terminated, all unspent monies will be distributed to franchisees operating a BCS Makery in proportion to their contributions during the preceding three-month period.