How are Buff City Soap loyalty program fees paid?
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. "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.
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- 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, 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. Payments are 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 monthly for the loyalty program, with the payment due at the same time as the Technology Fee. This fee covers the licensed cost of the program. The FDD specifies that payments must be made via electronic funds transfer, so franchisees should ensure they have the capability to make payments in this manner.
It's important to note that while Buff City Soap currently does not charge additional administrative fees for the loyalty program, they retain the right to do so in the future. Franchisees should be prepared for the possibility of increased costs associated with the loyalty program should Buff City Soap decide to implement such fees. Keeping an eye on any announcements or updates from Buff City Soap regarding potential changes to the fee structure is advisable.
Franchisees should also be aware that the Technology Fee, which is invoiced along with the loyalty program fees, is subject to change with 60 days' notice. This means that the total amount due each month could fluctuate, and franchisees should factor this potential variability into their financial planning.