Where in the Buff City Soap Franchise Agreement can I find details about the Brand Fund Contribution?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
- (g) "Brand Fund Contribution" means the continuing monthly contribution to the Brand Fund Franchisee must pay to Franchisor as set forth in Section 4 and in the amount set forth in the Summary Page.
10. MARKETING.
(a) Brand Fund. Franchisor administers a Brand Fund for the creation and development of marketing, advertising, and related programs, campaigns and materials, including digital, print, Internet and Social Media, as well as the planning and purchasing of national, regional, and/or local advertising. Franchisee must contribute the Brand Fund Contribution to the Brand Fund as set forth in Section 4(c) of this Agreement. Franchisor may, at its sole option, increase the Brand Fund Contribution upon 60 days' prior notice to Franchisee, provided such increase will not exceed 4%, as further described in Section 10(d).
Franchisee acknowledges that the Brand Fund is intended to maximize recognition of the Marks and patronage of Buff City Soap makeries generally.
In addition to the contributions that Franchisee pays to the Brand Fund, Franchisee must make the Local Marketing Expenditure in such amounts as Franchisor establishes from time to time, which when combined with the amount Franchisee has paid in Brand Fund Contributions will not exceed 4% of Net Sales (allocated by Franchisor, at its sole option, among the Brand Fund Contribution and Local Marketing Expenditure), during the Initial Term of this Agreement.
The initial Local Marketing Expenditure is set forth in the Summary Page.
Source: Item 23 — Receipts (FDD pages 69–186)
What This Means (2025 FDD)
According to Buff City Soap's 2025 Franchise Disclosure Document, details regarding the Brand Fund Contribution can be found in Section 4 and Section 10 of the Franchise Agreement, as well as the Summary Page. The Brand Fund Contribution is defined as the continuing monthly contribution that the franchisee must pay to Buff City Soap for the promotion of the Brand.
Section 10(a) specifies that franchisees must contribute to the Brand Fund, which Buff City Soap administers for marketing, advertising, and related programs. Buff City Soap has the option to increase the Brand Fund Contribution with 60 days' notice, but such an increase cannot exceed 4%. The Brand Fund is used to direct initiatives related to positioning the Brand, including advertising and marketing programs, selection of geographic and media markets, and media placement.
Buff City Soap details that the Brand Fund may cover costs related to research and development, agency services, market research, creation and production of advertising materials, administration of advertising programs, promotional events, online and social media advertising, community relations, website maintenance, and other promotional activities deemed appropriate. The FDD also clarifies that the Brand Fund is intended to maximize recognition of the Marks and patronage of Buff City Soap makeries generally. However, Buff City Soap is not obligated to ensure that expenditures in any geographic area are proportionate to contributions from franchisees in that area, nor is there an obligation to ensure that any particular Makery benefits directly or in proportion to its contribution.
In addition to the Brand Fund Contribution, franchisees must also make a Local Marketing Expenditure, which, when combined with the Brand Fund Contribution, will not exceed 4% of Net Sales during the Initial Term of the Agreement. The initial Local Marketing Expenditure amount is specified in the Summary Page. Buff City Soap retains the right to terminate the Brand Fund, in which case any unspent monies will be distributed to franchisees in proportion to their contributions during the preceding three-month period.