What is the minimum monthly Technology Fee for a Buff City Soap franchise?

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Accepted Answer

d non-refundable when paid.
#### **OTHER FEES**

| Type of Fee (See Note 13)                | Amount*                                       | Due Date                                                                                                                       | Remarks                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|---------------------------------------------|-----------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Royalty Fee (See Note 1) | 6% of Net Sales | Currently payable monthly based on the prior calendar month's Net Sales and due on the 15th of each month | Payment must be made via electronic funds transfer. We reserve the right to modify the due date to every Friday for the preceding week commencing Monday and closing Sunday upon 60 days' prior written notice. |
| Brand Fund Contribution (See Note 2) | 2% of Net Sales | Currently payable monthly based on the prior calendar month's Net Sales and due on the 15th of each month | Payment must be made via electronic funds transfer. We reserve the right to increase the Brand Fund Contribution upon 60 days' written notice to you, but the Brand Fund Contribution, when combined with the Local Marketing Expenditure requirement, will not exceed 4% of Net Sales for the initial term of your Franchise Agreement. We have the right to modify the due date to every Friday based on Net Sales for the preceding week (commencing on Monday and closing on Sunday) upon 60 days prior written notice to you. |
| 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. |
| Technology Fee (See Note 3) | The monthly minimum is currently \$500. | Monthly with the Royalty Fee payment | Payment must be made via electronic funds transfer. We reserve the right to modify the Technology Fee upon 60 days' prior written notice to you. We have the right to modify the due date to every Friday to coincide with payment of the Royalty Fee and Brand Fund Contribution. upon 60 days prior written notice to Franchisee. |
| Type of Fee | Amount* | Due Date | Remarks |
| (See Note 13) |  |  |  |
| Technology Maintenance, Updates and Upgrades | \$1,000 annually for hardware and \$1,000 biannually for software | Payable to vendors as incurred | This is our estimate of the total annual/biannual cost to you of optional or required maintenance, updating or upgrading of hardware and software. This fee does not cover credit card processing fees. |
| Loyalty Program Fees (See Note 4) | Currently \$119 per month. We do not currently charge fees to administer the loyalty program above the licensed cost of the program but reserve the right to charge a fee in the future. | Monthly with the Technology Fee payment | Payment is currently made by us to a third-party supplier and must be made via electronic funds transfer. |
| Gift Card Program (See Note 5) | Issuer expenses multiplied by 105%. | Within 20 days after invoice date. | Service Fees under the Gift Card Program Agreement (Exhibit K to the Franchise Agreement) shall be payable as follows: for each measurement period, which shall be at least quarterly, Issuer shall provide to us an estimate of the Issuer Expenses and other components of the formula by which the Service Fees are determined for the measurement period just ended. |
| COMO (Loyalty Services and Text Messaging Program) | Currently \$499 per month | Monthly with the Royalty Fee payment | You may use the COMO communications tool for SMS texting with customers, but you are currently not required to do so. The fee for COMO is payable to us and passed through to the vendor. |
| Appointedd | Currently \$21.97 per month | Monthly with the Royalty Fee payment | You are required to use the Appointedd® tool for your online event scheduling, calendaring, and booking activities. This application allows end users to view Makery event availability and manage bookings online. The fee for Appointedd is payable to us and passed through to the vendor. |
| Type of Fee | Amount* | Due Date | Remarks |
| (See Note 13) |  |  |  |
| Woven | Currently \$36 per month | Monthly with the Technology Fee payment | You are required to use the Woven® tool for your operations management. The fee for Woven is payable to us and passed through to the vendor. You must execute the Woven Acknowledgment attached as Exhibit M to the Franchise Agreement. |
| Inspection and Testing for Unapproved Suppliers, Products or Equipment | Out-of-pocket costs and expenses we incur for any inspection or testing. | Upon invoice | We reserve the right to invoice you for our out-of-pocket costs and expenses we incur for any inspection or testing. Since 2018 we have not had the necessity to assess this fee. |
| Regional Cooperative Fee | If established, up to 2% of Net Sales | Weekly with each Royalty Fee payment | Payable if we establish and collect the fees for a regional marketing or advertising cooperative |
| Additional Training Fees (See Note 6) | \$500 per day per trainer plus trainer's travel, lodging, meal and incidental expenses for additional initial training requested by you; up to \$2,500 for replacement manager training; up to \$1,500 for regional meeting training and separate training at the Annual Conference; up to \$5,000 if you fail to demonstrate competency of pre training materials such that you are required by us to repeat training | As incurred | We may provide additional employee training at your Franchised Business. We may change this rate at any time in the Manuals. Replacement managers must attend training before starting work. |
| Type of Fee | Amount* | Due Date | Remarks |
| (See Note 13) |  |  |  |
| Transfer Fees (See Note 7) | 25% of then-current initial franchise fee for each BCS Makery transferred; waived for existing franchisees with certain qualifications; \$5,000 for training if transferee is new to Brand | Upon transfer | Payable in lieu of an initial franchise fee if you transfer the Franchise Agreement or Franchised Business or upon ownership change involving control of 50% or more of your equity interests. Enforcement is subject to state law. |
| Relocation Fee | \$5,000 or such greater amount necessary to reimburse us for costs associated with a franchisee relocating their BCS Makery location | As incurred | Payable if you request our approval to relocate a BCS Makery |
| Bank Fees | Actual Bank Fees charged for insufficient funds or denied access for EFT/ACH transfer plus \$25 per event, subject to limits imposed by applicable law | As incurred | Payable if a bank charges us fees for a returned check or denied electronic funds transfer payment to us. Minnesota law limits these fees to \$30 per dishonored check. |
| Audit Results and Accounting Fees (See Note 8) | Underpaid Royalty Fees, Brand Fund Contributions and other fees; Cost of audit and accounting fees | Within 15 days after invoice date | Payable if you understate annual Net Sales by more than 2%; paid in addition to the late charge |
| Late Charge | Lesser of 18% per annum or highest rate allowed by law (10% in California) | Within 15 days after invoice date | Accrues from due date |
| Late Fee | \$150 | Upon invoice | You must pay to us a late fee in the amount of \$150 for each report that you fail to timely submit to us under Section 4(g) and each payment not received by us by the prescribed due date. |
| Successor Fee (See Note 9) | 50% of the initial franchise fee we then charge for a similar Franchised Business | When you send your renewal notice | Paid if and when you renew, and we confirm that you are eligible to renew and sign a successor franchise agreement |
| Type of Fee | Amount* | Due Date | Remarks |
| (See Note 13) |  |  |  |
| Securities Offering Fees | \$10,000 for each Makery included in an offering, plus expenses that exceed the fee; Reimbursement for counsel and accounting fees for review of periodic reports | Upon request for approval of offering documents | Payable if

Source: Item 5 — INITIAL FEES (FDD pages 15–23)

What is the minimum monthly Technology Fee for a Buff City Soap franchise?

Answer from 2025 FDD Document

OTHER FEES

What This Means (2025 FDD)

Type of Fee (See Note 13)	Amount*	Due Date	Remarks
Royalty Fee (See Note 1)	6% of Net Sales	Currently payable monthly based on the prior calendar month's Net Sales and due on the 15th of each month	Payment must be made via electronic funds transfer. We reserve the right to modify the due date to every Friday for the preceding week commencing Monday and closing Sunday upon 60 days' prior written notice.
Brand Fund Contribution (See Note 2)	2% of Net Sales	Currently payable monthly based on the prior calendar month's Net Sales and due on the 15th of each month	Payment must be made via electronic funds transfer. We reserve the right to increase the Brand Fund Contribution upon 60 days' written notice to you, but the Brand Fund Contribution, when combined with the Local Marketing Expenditure requirement, will not exceed 4% of Net Sales for the initial term of your Franchise Agreement. We have the right to modify the due date to every Friday based on Net Sales for the preceding week (commencing on Monday and closing on Sunday) upon 60 days prior written notice to you.
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.
Technology Fee (See Note 3)	The monthly minimum is currently $500.	Monthly with the Royalty Fee payment	Payment must be made via electronic funds transfer. We reserve the right to modify the Technology Fee upon 60 days' prior written notice to you. We have the right to modify the due date to every Friday to coincide with payment of the Royalty Fee and Brand Fund Contribution. upon 60 days prior written notice to Franchisee.
Type of Fee	Amount*	Due Date	Remarks
(See Note 13)
Technology Maintenance, Updates and Upgrades	$1,000 annually for hardware and $1,000 biannually for software	Payable to vendors as incurred	This is our estimate of the total annual/biannual cost to you of optional or required maintenance, updating or upgrading of hardware and software. This fee does not cover credit card processing fees.
Loyalty Program Fees (See Note 4)	Currently $119 per month. We do not currently charge fees to administer the loyalty program above the licensed cost of the program but reserve the right to charge a fee in the future.	Monthly with the Technology Fee payment	Payment is currently made by us to a third-party supplier and must be made via electronic funds transfer.
Gift Card Program (See Note 5)	Issuer expenses multiplied by 105%.	Within 20 days after invoice date.	Service Fees under the Gift Card Program Agreement (Exhibit K to the Franchise Agreement) shall be payable as follows: for each measurement period, which shall be at least quarterly, Issuer shall provide to us an estimate of the Issuer Expenses and other components of the formula by which the Service Fees are determined for the measurement period just ended.
COMO (Loyalty Services and Text Messaging Program)	Currently $499 per month	Monthly with the Royalty Fee payment	You may use the COMO communications tool for SMS texting with customers, but you are currently not required to do so. The fee for COMO is payable to us and passed through to the vendor.
Appointedd	Currently $21.97 per month	Monthly with the Royalty Fee payment	You are required to use the Appointedd® tool for your online event scheduling, calendaring, and booking activities. This application allows end users to view Makery event availability and manage bookings online. The fee for Appointedd is payable to us and passed through to the vendor.
Type of Fee	Amount*	Due Date	Remarks
(See Note 13)
Woven	Currently $36 per month	Monthly with the Technology Fee payment	You are required to use the Woven® tool for your operations management. The fee for Woven is payable to us and passed through to the vendor. You must execute the Woven Acknowledgment attached as Exhibit M to the Franchise Agreement.
Inspection and Testing for Unapproved Suppliers, Products or Equipment	Out-of-pocket costs and expenses we incur for any inspection or testing.	Upon invoice	We reserve the right to invoice you for our out-of-pocket costs and expenses we incur for any inspection or testing. Since 2018 we have not had the necessity to assess this fee.
Regional Cooperative Fee	If established, up to 2% of Net Sales	Weekly with each Royalty Fee payment	Payable if we establish and collect the fees for a regional marketing or advertising cooperative
Additional Training Fees (See Note 6)	$500 per day per trainer plus trainer's travel, lodging, meal and incidental expenses for additional initial training requested by you; up to $2,500 for replacement manager training; up to $1,500 for regional meeting training and separate training at the Annual Conference; up to $5,000 if you fail to demonstrate competency of pre training materials such that you are required by us to repeat training	As incurred	We may provide additional employee training at your Franchised Business. We may change this rate at any time in the Manuals. Replacement managers must attend training before starting work.
Type of Fee	Amount*	Due Date	Remarks
(See Note 13)
Transfer Fees (See Note 7)	25% of then-current initial franchise fee for each BCS Makery transferred; waived for existing franchisees with certain qualifications; $5,000 for training if transferee is new to Brand	Upon transfer	Payable in lieu of an initial franchise fee if you transfer the Franchise Agreement or Franchised Business or upon ownership change involving control of 50% or more of your equity interests. Enforcement is subject to state law.
Relocation Fee	$5,000 or such greater amount necessary to reimburse us for costs associated with a franchisee relocating their BCS Makery location	As incurred	Payable if you request our approval to relocate a BCS Makery
Bank Fees	Actual Bank Fees charged for insufficient funds or denied access for EFT/ACH transfer plus $25 per event, subject to limits imposed by applicable law	As incurred	Payable if a bank charges us fees for a returned check or denied electronic funds transfer payment to us. Minnesota law limits these fees to $30 per dishonored check.
Audit Results and Accounting Fees (See Note 8)	Underpaid Royalty Fees, Brand Fund Contributions and other fees; Cost of audit and accounting fees	Within 15 days after invoice date	Payable if you understate annual Net Sales by more than 2%; paid in addition to the late charge
Late Charge	Lesser of 18% per annum or highest rate allowed by law (10% in California)	Within 15 days after invoice date	Accrues from due date
Late Fee	$150	Upon invoice	You must pay to us a late fee in the amount of $150 for each report that you fail to timely submit to us under Section 4(g) and each payment not received by us by the prescribed due date.
Successor Fee (See Note 9)	50% of the initial franchise fee we then charge for a similar Franchised Business	When you send your renewal notice	Paid if and when you renew, and we confirm that you are eligible to renew and sign a successor franchise agreement
Type of Fee	Amount*	Due Date	Remarks
(See Note 13)
Securities Offering Fees	$10,000 for each Makery included in an offering, plus expenses that exceed the fee; Reimbursement for counsel and accounting fees for review of periodic reports	Upon request for approval of offering documents	Payable if