Can a Buff City Soap franchisee own or operate a Competitive Business with Franchisor's consent?

According to the 2025 FDD, a Buff City Soap franchisee can operate certain pre-existing businesses that would otherwise be considered competitive. Specifically, the franchise agreement outlines that the definition of a "Competitive Business" includes retail establishments similar to Buff City Soap makeries, particularly those featuring products free of artificial detergents, dyes, or harsh chemicals, or those where soaps, lotions, bath bombs, and similar products account for 25% or more of the gross monthly sales. However, this definition excludes other businesses licensed by Buff City Soap or its affiliates, and importantly, it excludes the franchisee's "Existing Brands."

Exhibit G of the Buff City Soap franchise agreement addresses the franchisee's Protected Area and Premises. It states that the franchisor approves the continued operation of brands existing as of the effective date of the agreement. Furthermore, the franchisor acknowledges that the franchisee may continue to develop additional units of these existing brands within the Designated Area during the term of the agreement. This is allowed without creating any obligation to the franchisor, essentially granting a waiver for pre-existing competitive businesses.

In practical terms, this means that if a prospective Buff City Soap franchisee already owns or operates a business that could be considered competitive before signing the franchise agreement, they can continue to operate and even expand that business within their designated area. This is a significant benefit as it allows individuals with existing business ventures to diversify into the Buff City Soap franchise without having to divest their current interests. However, it is crucial for potential franchisees to disclose all existing business interests during the application process to ensure they are properly documented and approved under Exhibit G to avoid future conflicts.