Where can I find the Royalty Fee for the Initial Term for a Buff City Soap franchise?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
eral Release | | Exhibit D | Form of Non-Disclosure and Non-Use Agreement | | Exhibit E | Disclosure Document Addenda Required by Certain States | | Exhibit K | Training Liability Waiver |
ITEM 23
RECEIPT
Duplicate copies of the receipt appear after the exhibits as Exhibit K to this disclosure document.
EXHIBIT A FRANCHISE AGREEMENT
Franchise Agreement
SUMMARY PAGE
These pages summarize certain provisions of the Franchise Agreement to which they are attached. The Franchise Agreement's provisions will control in the event of any conflict.
| Effective Date: | ||
|---|---|---|
| Designated Area: | ||
| Initial Franchise Fee: | $50,000 | |
| Royalty Fee: | 6% of Net Sales | |
| Brand Fund Contributi |
Source: Item 23 — Receipts (FDD pages 69–186)
What This Means (2025 FDD)
According to Buff City Soap's 2025 Franchise Disclosure Document, the Royalty Fee for the initial term is found on the summary page of the franchise agreement. The royalty fee is 6% of Net Sales.
This means that as a Buff City Soap franchisee, you will be required to pay 6% of your shop's net sales to the franchisor as a royalty fee throughout the initial term of the franchise agreement. The initial term is defined in the agreement as a period of ten years from the opening date of the Makery.
It is important to understand how 'Net Sales' is defined in the FDD, as this will directly impact the amount of royalty fees you owe. Also, keep in mind that this royalty fee is in addition to other fees such as the Brand Fund Contribution (2% of Net Sales) and Local Marketing Expenditure (1% of Net Sales), which are also calculated as a percentage of net sales. Prospective franchisees should carefully consider these ongoing costs when evaluating the profitability of a Buff City Soap franchise.