Can Buff City Soap invoice a franchisee for the costs of inspecting or testing a potential supplier?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
We reserve the right to test supplies and inspect the premises of suppliers before granting our approval. We reserve the right to invoice you for our out-of-pocket costs and expenses we incur for any inspection or testing. Since 2018, we have not had the necessity to assess this fee. We will not issue our approval of the supplier until you pay that invoice.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 29–32)
What This Means (2025 FDD)
According to Buff City Soap's 2025 Franchise Disclosure Document, if a franchisee wants to use a supplier not already approved by Buff City Soap, the franchisee must submit sufficient information for Buff City Soap to determine if the supplier meets their standards. Buff City Soap reserves the right to test supplies and inspect the premises of these potential suppliers before granting approval.
Buff City Soap also reserves the right to invoice the franchisee for any out-of-pocket costs and expenses incurred during the inspection or testing of the potential supplier. Buff City Soap will not approve the supplier until the franchisee pays the invoice for these costs.
It is important to note that while Buff City Soap has the right to assess this fee, they state that they have not found it necessary to do so since 2018. However, as a prospective franchisee, it is crucial to be aware of this potential cost when considering alternative suppliers, as Buff City Soap retains the right to charge for these inspections and tests.