Is a Buff City Soap franchisee required to contribute to the Brand Fund?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
ored value cards, gift certificates, gift cards, or vouchers sold or distributed by other Buff City Soap locations and include the related proceeds in Net Sales strictly in accordance with the Standards and further comply with Franchisor's policies related to such coupons, stored value cards, gift certificates, gift cards and vouchers set forth in the Manuals. Franchisee will not issue or offer any gift certificate, gift card, stored value card, customer loyalty or retention program without Franchisor's prior written approval. Franchisee will utilize a vendor approved by Franchisor or its Affiliates for gift card processing. Any coupon offer proposed by Franchisee must be approved by Franchisor in writing prior to being offered.
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).
Franchisor will direct all initiatives related to the positioning of the Brand using the Brand Fund, including without limitation advertising and marketing programs (e.g. research methods, branding, creative concepts and materials, sponsorships, and endorsements used in connection therewith); selection of geographic and media markets;
Source: Item 23 — Receipts (FDD pages 69–186)
What This Means (2025 FDD)
According to Buff City Soap's 2025 Franchise Disclosure Document, franchisees are required to contribute to the Brand Fund. The Brand Fund is used for the creation and development of marketing, advertising, and related programs, including digital, print, Internet and Social Media, as well as the planning and purchasing of national, regional, and/or local advertising.
Franchisees must make a Brand Fund Contribution as outlined in Section 4(c) of the Franchise Agreement. Buff City Soap has the option to increase the Brand Fund Contribution with 60 days' notice, but the increase cannot exceed 4%.
In addition to the Brand Fund contribution, franchisees must also make a Local Marketing Expenditure. The amount of the Local Marketing Expenditure, combined with the Brand Fund Contribution, will not exceed 4% of Net Sales during the Initial Term of the Franchise Agreement. The initial Local Marketing Expenditure amount is set forth in the Summary Page. The Brand Fund is accounted for separately from Buff City Soap's other funds and will not be used to defray general operating expenses, except for reasonable salaries, administrative costs, travel expenses, and overhead related to the Brand Fund's administration.