Do all Buff City Soap franchisees contribute the same amount to the Brand Fund?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
As of the issuance date of this disclosure document, all franchisees must pay us a weekly Brand Fund Contribution equal to two percent (2%) of the Net Sales of the Franchised Business for the preceding week. No franchisees contribute a different amount or a different rate. We will direct all initiatives relating to the positioning of the Brand using the Brand Fund. We will account for all Brand Fund Contributions we collect in a separate account. The Brand Fund will not be used to defray any of our general operating expenses, except for reasonable salaries, administrative costs, travel expenses, and overhead as we may incur in activities related to the administration of the Brand Fund and its programs.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 35–42)
What This Means (2025 FDD)
According to Buff City Soap's 2025 Franchise Disclosure Document, all franchisees contribute the same percentage of their net sales to the Brand Fund. Specifically, each franchisee must pay a weekly Brand Fund Contribution equal to two percent (2%) of the Net Sales of the Franchised Business for the preceding week. The FDD states explicitly that no franchisees contribute a different amount or a different rate. This Brand Fund is used for marketing, advertising, and related programs to promote the Buff City Soap brand.
In addition to the Brand Fund contribution, franchisees must also make a Local Marketing Expenditure. The minimum aggregate amount required for both the Local Marketing Expenditure and the Brand Fund will not exceed 4% of Net Sales during any period consisting of four consecutive fiscal quarters. As of the issuance date of the disclosure document, the initial Local Marketing Expenditure is 1% of Net Sales.
Buff City Soap retains the option to increase the Brand Fund Contribution with 60 days' prior notice to franchisees, but this is subject to the overall limitation of 4% for combined Brand Fund and Local Marketing Expenditure. If a franchisee's Local Marketing Expenditure combined with their Brand Fund Contributions totals less than the required percentage of Net Sales, Buff City Soap may require the franchisee to spend additional amounts on local marketing. If these additional amounts are not spent, Buff City Soap can collect the unspent funds and contribute them to the Brand Fund.