What is the monthly payment obligation for the 'Brand Fund Contribution' for a Buff City Soap franchise?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
- (g) "Brand Fund Contribution" means the continuing monthly contribution to the Brand Fund Franchisee must pay to Franchisor as set forth in Section 4 and in the amount set forth in the Summary Page.
10. MARKETING.
(a) Brand Fund. Franchisor administers a Brand Fund for the creation and development of marketing, advertising, and related programs, campaigns and materials, including digital, print, Internet and Social Media, as well as the planning and purchasing of national, regional, and/or local advertising. Franchisee must contribute the Brand Fund Contribution to the Brand Fund as set forth in Section 4(c) of this Agreement. Franchisor may, at its sole option, increase the Brand Fund Contribution upon 60 days' prior notice to Franchisee, provided such increase will not exceed 4%, as further described in Section 10(d).
Franchisor will direct all initiatives related to the positioning of the Brand using the Brand Fund, including without limitation advertising and marketing programs (e.g. research methods, branding, creative concepts and materials, sponsorships, and endorsements used in connection therewith); selection of geographic and media markets; and media placement and the allocation thereof.
Franchisor may use the Brand Fund to pay the costs of research (including without limitation Product research and development, formulation development, Product design, labeling and packaging), agency of record services, market research (e.g. customer engagement with the Brand, including shop design and décor, uniform design, customer service techniques, customer research and focus groups) creation and production of video, audio, electronic, and written advertising and marketing programs; administration of regional, multi-regional, and national advertising and marketing programs, Product and customer research and surveys, and testing and related development activities; promotional events; purchasing and participating in online, Social Media, radio, television, and billboard advertising and programming; employing marketing, advertising and promotional agencies to assist therewith; conducting community relations activities; and supporting public relations, maintenance of the System websites, and online presence; and such other advertising, marketing, and promotional activities as Franchisor determines are appropriate for the Buff City Soap makeries and the Marks and System under which they operate.
- (d) Local Marketing Expenditure.
In addition to the contributions that Franchisee pays to the Brand Fund, Franchisee must make the Local Marketing Expenditure in such amounts as Franchisor establishes from time to time, which when combined with the amount Franchisee has paid in Brand Fund Contributions will not exceed 4% of Net Sales (allocated by Franchisor, at its sole option, among the Brand Fund Contribution and Local Marketing Expenditure), during the Initial Term of this Agreement.
The initial Local Marketing Expenditure is set forth in the Summary Page.
Source: Item 23 — Receipts (FDD pages 69–186)
What This Means (2025 FDD)
According to the 2025 Buff City Soap Franchise Disclosure Document, the Brand Fund Contribution is a continuing monthly payment that franchisees must make to Buff City Soap, as detailed in Section 4 and specified in the Summary Page. The purpose of this fund is to support the creation and development of marketing, advertising, and related programs at the national, regional, and local levels. These initiatives include digital, print, Internet, and social media campaigns, as well as the planning and purchasing of advertising. Buff City Soap has the option to increase the Brand Fund Contribution with a 60-day notice, but such increases cannot exceed 4%.
Buff City Soap directs all initiatives related to positioning the brand using the Brand Fund. This includes advertising and marketing programs, research methods, branding, creative concepts, sponsorships, and endorsements. It also covers the selection of geographic and media markets, media placement, and the allocation thereof. The Brand Fund may cover costs related to product research and development, formulation development, product design, labeling and packaging, agency services, market research, and the creation and production of advertising materials.
Additionally, the Brand Fund can be used for promotional events, online and social media advertising, radio, television, and billboard advertising, employing marketing agencies, conducting community relations activities, and maintaining the System websites and online presence. Franchisees are also required to make a Local Marketing Expenditure, which, when combined with the Brand Fund Contribution, will not exceed 4% of Net Sales during the Initial Term of the Franchise Agreement. The initial Local Marketing Expenditure is detailed in the Summary Page.
While the FDD defines the Brand Fund Contribution and outlines its uses, the specific monthly payment amount or percentage is not provided in this section. A prospective franchisee should refer to the Summary Page of the FDD or ask the franchisor directly to determine the exact amount of the Brand Fund Contribution and the initial Local Marketing Expenditure.