What happens to unspent monies if the Brand Fund for Buff City Soap is terminated?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor reserves the right to terminate (and, if terminated, to reinstate) the Brand Fund.
If the Brand Fund is terminated, all unspent monies on the date of termination accrued will be distributed to franchisees operating a Buff City Soap makery in proportion to their respective contributions to the Brand Fund accrued during the preceding three-month period.
Source: Item 23 — Receipts (FDD pages 69–186)
What This Means (2025 FDD)
According to the 2025 FDD, Buff City Soap retains the right to terminate its Brand Fund. Should the Brand Fund be terminated, any unspent monies accrued up to the termination date will be distributed to franchisees. The distribution will be proportional to each franchisee's contributions to the Brand Fund during the three-month period preceding the termination date.
This means that if Buff City Soap decides to end the Brand Fund, franchisees will receive a portion of the remaining funds. The amount they receive directly correlates to how much they contributed to the fund in the months leading up to the termination. This arrangement ensures that franchisees who have recently contributed to the fund are the ones who benefit most from its remaining balance.
For a prospective Buff City Soap franchisee, this offers some assurance that contributions to the Brand Fund are not entirely lost if the fund is discontinued. However, franchisees should be aware that the distribution is based only on the previous three months of contributions, so long-term contributions may not be fully accounted for. It is also important to note that the franchisor has the right to terminate and reinstate the Brand Fund, which could impact marketing strategies and fund availability.