To whom is the Local Marketing Expenditure paid for a Buff City Soap franchise?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (See Note 13) | Amount* | Due Date | Remarks |
|---|---|---|---|
| Local Marketing Expenditure (See Note 2) | 1% of Net Sales | Payable to vendors as incurred | We have the right to request copies of documentation evidencing your compliance with the Local Marketing Expenditure. |
Source: Item 5 — INITIAL FEES (FDD pages 15–23)
What This Means (2025 FDD)
According to Buff City Soap's 2025 Franchise Disclosure Document, franchisees are required to spend at least 1% of Net Sales on Local Marketing Expenditures. These expenditures are paid to vendors as they are incurred. Buff City Soap retains the right to request documentation to verify compliance with this Local Marketing Expenditure requirement.
In addition to the Local Marketing Expenditure, franchisees must also contribute 2% of Net Sales to the Brand Fund. The total minimum amount required for both the Brand Fund Contributions and Local Marketing Expenditures will not exceed 4% of Net Sales during any period of four consecutive fiscal quarters. Buff City Soap has the discretion to allocate this amount between the Brand Fund and Local Marketing Expenditures.
If a franchisee fails to meet the minimum spending requirements for Local Marketing Expenditures and Brand Fund Contributions, Buff City Soap has the right to collect any unspent amounts and contribute them to the Brand Fund. This ensures that all franchisees are contributing to marketing efforts, whether locally or nationally, to support the Buff City Soap brand.