What is excluded from the definition of a 'Competitive Business' for a Buff City Soap franchise?

According to Buff City Soap's 2025 Franchise Disclosure Document, a 'Competitive Business' is defined as any retail establishment that 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 less than 12 months).

However, the definition of a Competitive Business specifically excludes certain types of businesses. These exclusions are (i) other businesses that are licensed by Buff City Soap or any of its affiliates, and (ii) the franchisee's existing brands. This means that if a franchisee owns other businesses under different brands before signing the franchise agreement, those existing businesses are not considered competitive businesses under the terms of the agreement.

This exclusion is important for prospective franchisees as it clarifies the scope of the non-compete obligations. Franchisees are not restricted from operating their pre-existing businesses, even if those businesses might otherwise be considered competitive. However, they are restricted from opening or operating new businesses that would be considered competitive to Buff City Soap, as defined in the Franchise Agreement, during the term of the agreement and for a period of time after the agreement expires or is terminated.