Is the initial franchise fee paid to Buff City Soap by all similarly situated franchisees the same?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
terms and conditions of those vendors. We do not provide any direct or indirect financing for initial franchise fees or development fees, other fees or other costs paid to us or to third parties. We do not provide any guarantees for any financing provided to you by third parties.
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- The initial franchise fee paid by you and other similarly situated Franchisees will be the same and is nonrefundable.
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- 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. When you sign each additional Franchise Agreement under the Development Agreement, you will sign the then-current form of franchise agreement that we offer, which may contain materially different terms.
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 paid by similarly situated franchisees is the same. The initial franchise fee for a single Makery is $50,000, paid as a lump sum when signing the Franchise Agreement. This fee is nonrefundable.
For franchisees who sign a Development Agreement to develop multiple Buff City Soap locations, a development fee is required. This fee is 100% of the initial franchise fee ($50,000) for the first Makery and 50% of the initial franchise fee ($25,000) for each additional Makery. For example, the total development fee for two Makeries is $75,000. This development fee is also the same for similarly situated franchisees and is non-refundable.
When a franchisee signs the Franchise Agreement for their first Buff City Soap location under a Development Agreement, a portion of the development fee is credited to satisfy the initial franchise fee. For each additional Franchise Agreement signed under the Development Agreement, the franchisee will sign the then-current form of the franchise agreement, which may have different terms. The franchisee will also pay the balance due for the initial franchise fee, which is the initial franchise fee minus the applicable portion of the development fee ($25,000 if developing 2 Makeries).