When is the Initial Franchise Fee due to Buff City Soap under the Virginia addendum?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
THIS ADDENDUM is made and entered into on, 20 (the "Effective Date") by and between BUFF CITY SOAP FRANCHISING, LLC, a limited liability company formed under the laws of the State of Delaware, with its principal business address at 5294 Beltline Road, Suite 100, Dallas, Texas 75254, ("we," "us,"' or, "our"), and , a [corporation, limited liability company, general partnership, or limited partnership] formed under the laws of the State of, [or a sole proprietorship] with its principal business address at ("you" or "your"). 1.
BACKGROUND.
We and you are parties to that certain Franchise Agreement dated , 20 (the "Franchise Agreement") that has been signed concurrently with the signing of this Addendum.
This Addendum is annexed to and forms part of the Franchise Agreement.
This Addendum is being signed because (a) any of the offering or sales activity relating to the Franchise Agreement occurred in Illinois and the Buff City Soap Makery that you will operate under the Franchise Agreement will be located in Illinois, and/or (b) you are domiciled in Illinois.
Illinois law governs the agreements between the parties to this franchise.
Section 4 of the Illinois Franchise Disclosure Act provides that any provision in a franchise agreement that designates jurisdiction or venue outside the State of Illinois is void.
However, a franchise agreement may provide for arbitration outside of Illinois.
Item 5 is amended to state that payment of Initial Franchise/Development Fees will be deferred until Franchisor has met its initial obligations to franchisee, and franchisee has commenced doing business.
This financial assurance requirements was imposed by the Office of the Illinois Attorney General due to Franchisor's financial condition.
Section 41 of the Illinois Franchise Disclosure Act provides that any condition, stipulation, or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
Your rights upon termination and non-renewal of a franchise agreement are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.
Source: Item 6 — , Securities Offering Fee, in the amount column is revised to state the following: (FDD pages 216–303)
What This Means (2025 FDD)
According to the 2025 Buff City Soap Franchise Disclosure Document, there is no specific information provided in the Virginia addendum regarding when the initial franchise fee is due. The addendum primarily focuses on general provisions and modifications to agreements, without explicitly addressing the timing of the initial franchise fee payment.
Without specific details in the Virginia addendum, prospective Buff City Soap franchisees in Virginia should refer to the standard Franchise Agreement for details on when the initial franchise fee is due. It is common for franchise agreements to outline a payment schedule or conditions that trigger the payment of this fee.
To fully understand the payment terms, a potential Buff City Soap franchisee in Virginia should clarify with the franchisor the exact conditions and timeline for when the initial franchise fee is due. This might involve confirming whether the standard terms apply or if there are any unwritten modifications or understandings specific to Virginia.