When is the initial franchise fee due for a Buff City Soap franchise?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
| Nature of Expenditure | Low | High Estimate | Payment | When Due | Payment | |---------------------------------|-----------------|---------------|-------------------|------------------|---------------| | | Estimate | | Method | | To | | Initial Franchise Fee (See Note | | | | At signing of | | | 2) | | | | Franchise | | | | $50,000 | $50,000 | Lump sum | Agreement | Franchisor | When you sign a Development Agreement, you must agree to develop a minimum of 2 Makeries and pay us a non-refundable development fee equal to 100% of the initial franchise fee for the first BCS Makery to be developed ($50,000) and 50% of the initial franchise fee for each additional BCS Makery ($25,000 if developing 2 Makeries) to be developed under the Development Agreement.
The total Development Fee due for 2 Makeries is $75,000.
When you sign the Franchise Agreement for your first BCS Makery, we will credit a portion of the development fee payment to satisfy the initial franchise fee due under the first Franchise Agreement.
In addition, you will pay us the balance due for the initial franchise fee due under each applicable Franchise Agreement ($25,000 if developing 2 Makeries), which will be the initial franchise fee minus the applicable portion of the development fee. Payments to us are uniformly imposed and not refundable.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 24–28)
What This Means (2025 FDD)
According to Buff City Soap's 2025 Franchise Disclosure Document, the initial franchise fee, ranging from $50,000 to $75,000, is due at the signing of the Franchise Agreement. For a single Makery, the initial franchise fee is $50,000. If a franchisee enters into a Development Agreement to develop multiple locations, they must pay a development fee. This fee is equal to 100% of the initial franchise fee for the first Buff City Soap location ($50,000) and 50% of the initial franchise fee for each additional location ($25,000 if developing two Makeries). The total development fee for two Makeries is $75,000. A portion of the development fee will be credited to satisfy the initial franchise fee due under the first Franchise Agreement.
For franchisees entering into a Development Agreement, when signing each additional Franchise Agreement, they will be required to sign the then-current form of the franchise agreement, which may contain materially different terms. In addition, the franchisee will pay the balance due for the initial franchise fee under each applicable Franchise Agreement ($25,000 if developing two Makeries), which will be the initial franchise fee minus the applicable portion of the development fee.
It is important to note that all payments to Buff City Soap are uniformly imposed and non-refundable. This means that once the franchise agreement is signed and the initial fee is paid, the franchisee cannot get a refund, even if they later decide not to open the Buff City Soap location. This is a standard practice in franchising, as the initial fee covers the franchisor's costs of granting the franchise and providing initial training and support.