Are the franchisee's existing brands considered 'Competitive Businesses' to Buff City Soap?

According to the 2025 Buff City Soap Franchise Disclosure Document, a franchisee's existing brands are generally not considered 'Competitive Businesses.' 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 allows franchisees to continue operating their pre-existing businesses without them being classified as competitive to Buff City Soap.

Exhibit G of the FDD further clarifies this by stating that Buff City Soap approves the continued operation of the franchisee's existing brands as of the effective date of the agreement. It also acknowledges that the franchisee may continue to develop additional units of these existing brands within the Designated Area during the term of the agreement, without creating any obligation to Buff City Soap. This provides franchisees with the assurance that their current business ventures will not be hindered by their involvement with Buff City Soap, offering a degree of flexibility and security in their investment.