How many successor terms can a Buff City Soap franchisee elect to operate for?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Successor Term.
Franchisee may, at its option, continue to operate the Makery for two consecutive Successor Terms, subject to all of the following conditions which must be met prior to and at the time of such Successor Term.
- (c) Franchisee's Notice.
Franchisee must give Franchisor Notice of its election to continue to operate the Makery for a Successor Term no later than six (6) months before the expiration of the Initial Term.
- (1) Good Standing.
Franchisee must not be in default, nor previously have been in default within the 12-month period preceding its Notice of election, of any provision of this Agreement or any other agreement between Franchisee or any of its Affiliates and Franchisor and any of its Affiliates, and Franchisee must have substantially and timely complied with all the terms and conditions of this Agreement and such other agreements during the terms thereof.
In addition, the Makery must not be in the bottom quartile of average monthly Net Sales of all Buff City Soap makeries operating during the full 12 month period preceding Notice of election.
- (2) Premises.
Franchisee must present satisfactory evidence that Franchisee has the right to remain in possession of the Premises for the duration of the Successor Term.
- (3) Maintenance.
Franchisee must repair, replace, or procure, at Franchisee's sole cost and expense, the Operating Assets, supplies, and other products and materials required for the operation of the Makery as Franchisor may require, including, without limitation, new or additional items which may be reasonably required by Franchisor for Franchisee to offer and sell new Products, and to otherwise modernize the Makery to reflect the then-current Standards and image of the System as set forth in the Manuals or otherwise provided in writing by Franchisor.
Source: Item 23 — Receipts (FDD pages 69–186)
What This Means (2025 FDD)
According to Buff City Soap's 2025 Franchise Disclosure Document, a franchisee has the option to continue operating their Makery for two consecutive successor terms. This is contingent upon meeting specific conditions both before and during the successor term.
To be eligible for a successor term, the franchisee must provide notice to Buff City Soap at least six months before the expiration of the initial term. The franchisee must be in good standing, meaning they are not in default of any agreements with Buff City Soap or its affiliates, and have substantially complied with all agreement terms. Additionally, the Makery's average monthly net sales must not be in the bottom quartile of all Buff City Soap locations during the 12 months preceding the notice of election.
Further conditions include presenting evidence that the franchisee has the right to remain in possession of the premises for the duration of the successor term. The franchisee is also responsible for any required repairs, replacements, or upgrades to the Operating Assets, supplies, and other materials to meet Buff City Soap's current standards and image. This may include new items or modernization efforts as specified in the manuals or in writing by Buff City Soap.
These requirements ensure that franchisees seeking to renew their agreements maintain a certain level of performance and uphold the brand standards of Buff City Soap. Meeting these conditions is crucial for franchisees who wish to extend their business operations beyond the initial term.