For Buff City Soap franchisees in South Dakota, when is the initial franchise fee due?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
FOR THE STATE OF SOUTH DAKOTA
Item 5 of the Disclosure Document is amended to add the following:
The payment of the Initial Franchise Fees are not due until such time as the franchisor has fulfilled its pre-opening obligations and the franchisee has commenced business pursuant to the franchise agreement.
Source: Item 17 — (r) is amended subject to Indiana Code 23-2-2.7-1(9) to provide that the post-term noncompetition covenant shall have a geographical limitation of the territory granted to Franchisee. (FDD pages 210–216)
What This Means (2025 FDD)
According to the 2025 Buff City Soap Franchise Disclosure Document, franchisees in South Dakota are not required to pay the initial franchise fee until Buff City Soap has fulfilled its pre-opening obligations as outlined in the franchise agreement. Furthermore, the fee is not due until the franchisee has actually commenced business operations. This amendment to Item 5 of the disclosure document specifically addresses the timing of the initial franchise fee payment for South Dakota franchisees.
This deferred payment structure benefits prospective Buff City Soap franchisees in South Dakota by reducing their upfront financial burden. Instead of paying the franchise fee early in the process, they can delay payment until Buff City Soap has provided the necessary support and they are ready to open their doors. This can be particularly helpful for managing cash flow during the initial setup phase of the business.
It is important for potential Buff City Soap franchisees in South Dakota to carefully review the franchise agreement to understand exactly what constitutes Buff City Soap's pre-opening obligations. This will ensure they are clear on when the initial franchise fee becomes due. Additionally, franchisees should be aware that this deferred payment does not waive any other obligations or requirements outlined in the franchise agreement.