Can Buff City Soap increase the Brand Fund Contribution?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
ored value cards, gift certificates, gift cards, or vouchers sold or distributed by other Buff City Soap locations and include the related proceeds in Net Sales strictly in accordance with the Standards and further comply with Franchisor's policies related to such coupons, stored value cards, gift certificates, gift cards and vouchers set forth in the Manuals. Franchisee will not issue or offer any gift certificate, gift card, stored value card, customer loyalty or retention program without Franchisor's prior written approval. Franchisee will utilize a vendor approved by Franchisor or its Affiliates for gift card processing. Any coupon offer proposed by Franchisee must be approved by Franchisor in writing prior to being offered.
10. MARKETING.
(a) Brand Fund. Franchisor administers a Brand Fund for the creation and development of marketing, advertising, and related programs, campaigns and materials, including digital, print, Internet and Social Media, as well as the planning and purchasing of national, regional, and/or local advertising.
Source: Item 23 — Receipts (FDD pages 69–186)
What This Means (2025 FDD)
According to Buff City Soap's 2025 Franchise Disclosure Document, Buff City Soap has the option to increase the Brand Fund Contribution with a 60-day prior notice to the franchisee. However, this increase is capped, and the Brand Fund Contribution cannot exceed 4%.
This means that while Buff City Soap can adjust the Brand Fund Contribution, there are limitations in place to protect franchisees from potentially excessive increases. The 60-day notice provides franchisees with time to prepare for the change. The 4% cap ensures that franchisees' contributions to the Brand Fund remain within a reasonable limit of their net sales.
In addition to the Brand Fund Contribution, franchisees are also required to make a Local Marketing Expenditure. The amount of this expenditure is determined by Buff City Soap, but the combined total of the Brand Fund Contribution and the Local Marketing Expenditure cannot exceed 4% of the franchisee's net sales during the initial term of the agreement. This gives Buff City Soap the flexibility to allocate the marketing budget between the Brand Fund and local marketing efforts, while ensuring that the total marketing expenditure remains capped at 4% of net sales for the franchisee.