Does Buff City Soap grant franchisees an exclusive territory?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
You will not receive an exclusive territory. You may face competition from other franchisees, from Makeries that we own, or from other channels of distribution or competitive brands that we control.
Franchise Agreement
The franchise you are granted will be for one specified location approved by us. When you sign the Franchise Agreement, unless you have selected and we have accepted the precise location of the Franchised Business, we will designate an area defined by zip codes, a map, shopping areas, or other means (the "Designated Area"). You must find a location acceptable to us within the Designated Area during the 60-day period after you sign the Franchise Agreement. During this period, we will not grant a BCS Makery franchise to any other party and our Affiliates will not open or develop another BCS Makery within the Designated Area. You must find a location acceptable to us within the Designated Area. When we accept the location within the Designated Area you propose, we will fix the boundaries of a "Protected Area" for the Franchised Business.
There will be no minimum geographic size to your Designated Area or Protected Area. The Protected Area will be determined by the demographics and population size specific to your location. The minimum population size of the target demographic group within your Protected Area is determined on a case-by-case basis depending on the results of demographic research. Protected Areas will range in size from a site-specific location, i.e., a street address, to a block, a zip code, or a defined measurable area, depending on where your Makery is located. Typically, Makeries located in metropolitan areas will receive a smaller Protected Area than Makeries located in suburban/rural areas. Your Protected Area will be described in Exhibit G to your Franchise Agreement. During the term of your Franchise Agreement, and provided that you are not in default, we will not establish or license another person to establish another Makery within your Protected Area.
We generally will consider the relocation of a Franchised Business under the same criteria as we would consider for an application to approve any new location, such demographics, traffic patterns, physical site profiles, access, parking, competition in the market area, and other factors.
You do not have a right of first refusal to establish additional locations in your Protected Area, nor will you have any similar rights to obtain additional franchises.
Source: Item 12 — TERRITORY (FDD pages 43–45)
What This Means (2025 FDD)
According to Buff City Soap's 2025 Franchise Disclosure Document, franchisees will not receive an exclusive territory. However, when a franchisee signs the Franchise Agreement, Buff City Soap will designate an area defined by zip codes, a map, shopping areas, or other means (the "Designated Area"). The franchisee has 60 days to find a location acceptable to Buff City Soap within the Designated Area after signing the Franchise Agreement. During this 60-day period, Buff City Soap will not grant a franchise to any other party, nor will its Affiliates open or develop another Buff City Soap within the Designated Area. Once Buff City Soap accepts the location within the Designated Area, they will fix the boundaries of a "Protected Area" for the Franchised Business.
The size of the Designated Area or Protected Area will vary. The Protected Area will be determined by the demographics and population size specific to the location. The minimum population size of the target demographic group within the Protected Area is determined on a case-by-case basis depending on the results of demographic research. Protected Areas can range from a site-specific location, such as a street address, to a block, a zip code, or a defined measurable area, depending on where the Makery is located. Typically, Makeries located in metropolitan areas will receive a smaller Protected Area than Makeries located in suburban/rural areas. During the term of the Franchise Agreement, and provided that the franchisee is not in default, Buff City Soap will not establish or license another person to establish another Makery within the Protected Area.
Buff City Soap retains rights within and outside the Protected Area, including the rights to advertise and promote the System, operate and license other BCS Makeries outside the Protected Area, and offer and sell products and services through various channels of distribution. They can also establish other businesses, including those under different marks, and establish Makeries in Reserved Areas like military bases, airports, and shopping malls. Franchisees do not have a right of first refusal to establish additional locations in their Protected Area, nor will they have any similar rights to obtain additional franchises. Franchisees may face competition from other franchisees, company-owned outlets, other distribution channels, or competitive brands controlled by Buff City Soap.