How are loyalty program fees invoiced to Buff City Soap franchisees?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
h the Royalty Fee and Brand Fund Contributions.
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- Loyalty Program. We have created a Loyalty Program for frequent customers. Loyalty program fees will be invoiced each month with the Technology Fee.
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- 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.
Source: Item 5 — INITIAL FEES (FDD pages 15–23)
What This Means (2025 FDD)
According to Buff City Soap's 2025 Franchise Disclosure Document, loyalty program fees are invoiced monthly along with the Technology Fee. The current loyalty program fee is $119 per month. These payments are made by Buff City Soap to a third-party supplier and franchisees must make payments via electronic funds transfer.
Buff City Soap retains the right to charge a fee to administer the loyalty program in the future, in addition to the licensed cost of the program. The Technology Fee, which is invoiced alongside the Loyalty Program Fees, is currently a minimum of $500 per month. Buff City Soap reserves the right to increase the Technology Fee with a 60-day notice to franchisees.
Prospective franchisees should note that while the current loyalty program fee is fixed at $119 per month, this amount could change if Buff City Soap decides to implement additional administrative fees. It is important to factor in potential increases to these technology-related fees when assessing the overall cost of operating a Buff City Soap franchise.