Can Buff City Soap increase the Technology Fee?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
(yyy) "Summary Page" means the Summary Page of this Agreement that directly precedes the Table of Contents of this Agreement.
(zzz) "System" means the distinctive, unique and proprietary marks and trade dress, products, presentation styles and services, know-how, methods of operation, identification, décor, furnishings, equipment, training, service, production, technology, marketing, advertising, promotion and development that we may designate in written or electronic form or through usage from time to time that define and distinguish a Buff City Soap makery, including (without limitation) (1) plans and specifications for interior and exterior signs, designs, layouts and color schemes; (2) methods, techniques, formats, systems,, ingredients, product preparation instructions, specifications, procedures, information, trade secrets, sales and marketing programs; (3) methods of business operations and management; (4) Standards; (5) the Manuals; and (6) knowledge and experience regarding the operation and franchising of Buff City Soap makeries.
(aaaa) "Technology Fee" means the continuing monthly fee that Franchisee must pay to Franchisor as set forth in Section 4 and in the amount set forth in the Summary Page for access and use of certain components of the Technology System and support services related thereto.
(bbbb) "Technology System" means and includes, without limitation, (1) POS System, computer system, software (including Proprietary Software) data, telephone, voice messaging, retrieval and transmission system; (2) customer relationship management systems; (3) printers and other peripheral devices; (4) archival back-up systems; (5) Internet access mode (e.g. form of telecommunications connection) and speed; and (6) WiFi and other Internet services for customers.
Source: Item 23 — Receipts (FDD pages 69–186)
What This Means (2025 FDD)
According to Buff City Soap's 2025 Franchise Disclosure Document, the Technology Fee is defined as a continuing monthly fee that the franchisee must pay to the franchisor. The amount of this fee is set forth in Section 4 of the franchise agreement and is also listed on the Summary Page.
However, the excerpts provided do not specify whether Buff City Soap has the right to increase the Technology Fee during the term of the franchise agreement. The definition only states that it is a continuing monthly fee, and the Summary Page provides the initial amount.
A prospective franchisee should review Section 4 of the franchise agreement and the Summary Page to determine the initial Technology Fee amount and whether the franchisor has the right to increase this fee during the term. It would be prudent to ask the franchisor directly about the possibility of increases to the Technology Fee and under what conditions such increases could occur.