When is the initial franchise fee due to the Franchisor 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.
| Nature of Expenditure | Low Estimate | High Estimate | Method | When Due | Payment To |
|---|---|---|---|---|---|
| Initial Franchise Fee | At signing of | ||||
| (See Note 3) | $75,000 | $75,000 | Lump sum | Franchise Agreement | Franchisor |
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, which ranges from $50,000 to $75,000, is due at the signing of the Franchise Agreement. This fee is paid as a lump sum to the Franchisor. Note 2 in Item 7 of the FDD states that the initial franchise fee paid by you and other similarly situated Franchisees will be the same and is nonrefundable.
For those entering into a Development Agreement, which requires developing a minimum of two Buff City Soap locations, a development fee is required. This fee equals 100% of the initial franchise fee for the first location ($50,000) and 50% of the initial franchise fee for each additional location ($25,000 if developing two locations). The total development fee for two locations is $75,000.
A portion of the development fee is credited to satisfy the initial franchise fee due under the first Franchise Agreement when signing the Franchise Agreement for the first Buff City Soap location. However, the balance due for the initial franchise fee under each applicable Franchise Agreement ($25,000 if developing two Makeries) will be the initial franchise fee minus the applicable portion of the development fee.