What are some examples of businesses that are NOT considered a 'Competitive Business' to a Buff City Soap?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
- (k) "Competitive Business" means any retail establishment that, as determined by Franchisor, is the same as or substantially similar to the Makeries, including, without limitation, any personal body care product retail establishment or chain of retail establishments that feature products free of artificial detergents, surfactants, dyes, or harsh chemicals, or any retail establishment that has soaps, lotions, bath bombs and similar facial, body and hair care products collectively accounting for 25% or more of its average monthly gross sales for the retail establishment during the preceding 12 months (or, if the retail establishment has operated less than 12 months, the number of full calendar months of operation).
A Competitive Business does not include (i) other businesses that are licensed by Franchisor or any of its Affiliates; or (ii) Franchisee's Existing Brands.
Source: Item 23 — Receipts (FDD pages 69–186)
What This Means (2025 FDD)
According to the 2025 Buff City Soap Franchise Disclosure Document, a 'Competitive Business' is defined as any retail establishment that the Franchisor determines to be the same as or substantially similar to Buff City Soap makeries. This includes personal body care product retail establishments or chains that feature products free of artificial detergents, surfactants, dyes, or harsh chemicals. It also includes any retail establishment where soaps, lotions, bath bombs, and similar facial, body, and hair care products collectively account for 25% or more of its average monthly gross sales during the preceding 12 months (or the number of full calendar months of operation if the establishment has been operating for less than 12 months).
However, the FDD specifies exclusions to this definition. Businesses that are licensed by Buff City Soap or its affiliates are not considered 'Competitive Businesses'. Additionally, any Existing Brands that the franchisee owns are also excluded from being considered a Competitive Business.
This definition is important for prospective franchisees because it outlines the types of businesses that a franchisee or its principals cannot own, operate, or be involved with during the term of the franchise agreement and for a period of time after the agreement expires or is terminated. Understanding what constitutes a 'Competitive Business' is crucial for avoiding conflicts of interest and complying with the non-compete provisions of the franchise agreement.