Are a Buff City Soap franchisee's existing brands considered a 'Competitive Business'?

According to the 2025 Buff City Soap Franchise Disclosure Document, a franchisee's existing brands are explicitly excluded from being considered a 'Competitive Business.' The FDD defines a 'Competitive Business' as any retail establishment that Buff City Soap determines to be the same as or substantially similar to its Makeries. This includes personal body care product retail establishments or chains that feature products free of artificial detergents, surfactants, dyes, or harsh chemicals, or any retail establishment where soaps, lotions, bath bombs, and similar facial, body, and hair care products collectively account for 25% or more of its average monthly gross sales during the preceding 12 months.

However, the definition of 'Competitive Business' specifically excludes two categories: businesses licensed by Buff City Soap or its affiliates, and the franchisee's existing brands. This exclusion provides a significant benefit to prospective franchisees who may already own or operate other businesses. It allows them to invest in a Buff City Soap franchise without necessarily having to divest their existing business interests, even if those businesses might otherwise be considered competitive.

This clause protects franchisees' pre-existing business ventures, allowing them to diversify their investments without facing immediate conflict with the non-compete provisions typically found in franchise agreements. However, it is important for prospective franchisees to fully understand the scope of the 'Competitive Business' definition to ensure that any new business ventures they undertake during the term of the franchise agreement do not fall within the restricted categories.