How is the 'Initial Franchise Fee' for a Buff City Soap franchise determined, and where is it specified in the FDD?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
eral Release | | Exhibit D | Form of Non-Disclosure and Non-Use Agreement | | Exhibit E | Disclosure Document Addenda Required by Certain States | | Exhibit K | Training Liability Waiver |
ITEM 23
RECEIPT
Duplicate copies of the receipt appear after the exhibits as Exhibit K to this disclosure document.
EXHIBIT A FRANCHISE AGREEMENT
Franchise Agreement
SUMMARY PAGE
These pages summarize certain provisions of the Franchise Agreement to which they are attached. The Franchise Agreement's provisions will control in the event of any conflict.
| Effective Date: | ||
|---|---|---|
| Designated Area: | ||
| Initial Franchise Fee: | $50,000 | |
| Royalty Fee: | 6% of Net Sales | |
| Brand Fund Contribution: | 2% of Net Sales | |
| Local Marketing Expenditure: | 1% of Net Sales | |
| Market Introduction Budget: | $15,000 | |
| Offering Fee: | $10,000 per Makery Included in Offering | |
| Successor Fee: | 50% of Then-Current Initial Franchise Fee | |
| Transfer Fee: | 25% of Then-Current Initial Franchise Fee | |
| Operator: | [] | |
| Franchisee: | [], a [] | |
| Address for Notices: | [] | |
| Attention: | [] | |
| Email: | [] | |
| Franchisor: Address for Notices: |
Source: Item 23 — Receipts (FDD pages 69–186)
What This Means (2025 FDD)
According to Buff City Soap's 2025 Franchise Disclosure Document, the initial franchise fee is $50,000. This fee is specified in the Summary Page of the Franchise Agreement. The Initial Franchise Fee is owed to Buff City Soap Franchising, LLC upon the execution of the Franchise Agreement for each Makery developed. The document also mentions that this fee is subject to the application of any portion of the Development Fee, as outlined in Section 6(a).
This initial fee grants the franchisee the right to operate a Buff City Soap shop, known as a 'Makery,' under the company's established system, marks, and standards. It covers the initial costs associated with setting up the franchise and gaining access to the brand's resources and support. The fee is non-refundable and must be paid upon signing the franchise agreement.
Prospective franchisees should note that the initial franchise fee is just one component of the overall investment required to open a Buff City Soap franchise. Other costs, such as those related to real estate, construction, inventory, and working capital, will also need to be considered. It is important to carefully review the entire Franchise Disclosure Document and consult with a financial advisor to fully understand the financial obligations associated with becoming a Buff City Soap franchisee.
It is also important to note that the initial franchise fee can be subject to change in the future. The document mentions a 'Then-Current Initial Franchise Fee' in the context of Successor and Transfer Fees, implying that the initial fee amount could be adjusted over time. Therefore, prospective franchisees should always confirm the current initial franchise fee with Buff City Soap before making any commitments.