When is the Loyalty Program Fee due for a Buff City Soap franchise?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
h the Royalty Fee and Brand Fund Contributions.
-
- Loyalty Program. We have created a Loyalty Program for frequent customers. Loyalty program fees will be invoiced each month with the Technology Fee.
-
- Gift Card Program. The formula for Commissions per Gift Card sold by you is currently the estimated average handling costs of $.50 related to issuing a Gift Card multiplied by 105%. The estimate of the average handling costs shall be made by the issuer of the Gift Card. The Issuer shall review and (to the extent appropriate) adjust its estimates at reasonable intervals, not less frequently than annually. The Issuer may make its estimates by any reasonable method and, at its option, may use the same estimated average handling costs for all franchisees, in its sole discretion. "Issuer Expenses" means the sum of Issuer's Direct Costs and Issuer's Indirect Costs, with no reduction for any potential income from unredeemed Gift Cards. "Direct Costs" means and includes all costs identified specifically with the Issuer services, including an allocable portion of costs for compensation, bonuses and travel expenses attributable to employees directly engaged in providing Issuer services, for materials and supplies directly consumed in providing Issuer services, and for other direct costs, such as costs of printing, storing, and shipping Gift Cards, shared services costs, costs of marketing and promotional services provided by any third party service providers, promotional discounts on Gift Cards, and license fees for intellectual property. Direct Costs shall not include interest expense on indebtedness not incurred specifically for the benefit of you. "Indirect Costs" means and includes all costs that are not specifically identified with the Issuer services but that relate to the Direct Costs. Indirect Costs may include (for example) costs with respect to utilities, occupancy and other overhead burdens. The estimate of Issuer Expenses for each measurement period, which shall be at least quarterly, shall be made by Issuer or its agent. Issuer (or its agent) may make its estimates by any reasonable method.
-
- Additional Training Fees. The Additional Training Fee covers training and operational support provided at your request beyond the training and opening assistance that we provide as part of your initial franchise fee as described in Item 11. We currently charge $500 per day per trainer plus the trainer's travel expenses for additional training.
Source: Item 5 — INITIAL FEES (FDD pages 15–23)
What This Means (2025 FDD)
According to Buff City Soap's 2025 Franchise Disclosure Document, the Loyalty Program Fees are invoiced monthly along with the Technology Fee. The current Loyalty Program Fee is $119 per month. Buff City Soap does not currently charge fees to administer the loyalty program above the licensed cost of the program but reserves the right to charge a fee in the future. Payment is currently made by Buff City Soap to a third-party supplier and must be made via electronic funds transfer.
This means that as a Buff City Soap franchisee, you will be billed $119 each month for the Loyalty Program, with the payment due at the same time as your Technology Fee. It is important to note that while the fee is currently fixed at $119, Buff City Soap retains the right to introduce additional administrative fees for the loyalty program in the future. This could potentially increase your monthly expenses.
Franchisees should be aware that the Loyalty Program Fee, along with other technology-related fees, are subject to change with prior notice. It is important to budget for these ongoing costs and to stay informed about any potential fee adjustments from Buff City Soap. Understanding the terms and conditions of the Loyalty Program, as detailed in the Franchise Agreement, is crucial for managing your franchise's financial obligations.