For Buff City Soap franchises in Washington, when is the initial franchise fee due?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
FOR THE STATE OF WASHINGTON
Item 5 of the Disclosure Document is amended to add the following:
"Persons who receive financial incentives to refer franchise prospects to Franchisors may be required to register as franchise brokers under the laws of Washington state."
"The payment of all initial franchise fees is not due until such time as the franchisor has fulfilled its pre-opening obligations and the franchisee is open for business pursuant to the franchise agreement. With respect to each business the franchisee opens under the Area Development Agreement, we will prorate all development fees, such that the franchisee will pay us all development fees proportionally after we have satisfied our preopening obligations outlined in the Franchise Agreement with respect to each unit franchise. The Initial Franchise Fee for the first outlet will not be due in full after we have satisfied our preopening obligations outlined in the Franchise Agreement with respect to its first outlet."
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, for franchises in Washington state, the initial franchise fee is not due until Buff City Soap has fulfilled its pre-opening obligations. Additionally, the franchisee must be open for business as per the franchise agreement before the initial franchise fee is due.
For franchisees entering into an Area Development Agreement with Buff City Soap, the development fees will be prorated. This means the franchisee will pay the development fees proportionally after Buff City Soap has met its preopening obligations for each unit franchise, as outlined in the Franchise Agreement.
Notably, the initial franchise fee for the first outlet under the Area Development Agreement will not be due in full until Buff City Soap has satisfied all preopening obligations related to that first outlet. This amendment to Item 5 of the disclosure document clarifies the payment terms for initial franchise fees and development fees for Washington state franchisees, providing a more structured and phased payment approach linked to the franchisor's performance and the franchisee's operational readiness.