Where can I find the royalty fee for the initial term of 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 is detailed on the summary page of the franchise agreement. The royalty fee is 6% of Net Sales. This fee is paid to Buff City Soap throughout the initial term of the franchise agreement.
The initial term for a Buff City Soap franchise is defined in Section 3(a) of the franchise agreement. It begins on the effective date of the agreement and lasts for ten years from the Makery's opening date. Therefore, the 6% royalty fee applies for the entire 10-year initial term.
In addition to the royalty fee, Buff City Soap franchisees must also contribute 2% of Net Sales to the Brand Fund and spend 1% of Net Sales on local marketing. These ongoing expenses should be factored into the franchisee's financial projections.