How is the monthly royalty fee calculated for a Buff City Soap franchise?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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. |
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- Royalty Fee. You must pay us a monthly royalty fee of 6% of the Net Sales of your Franchised Business during the preceding month.
Monthly Net Sales are reported to us each day through the BCS Makery Point of Sale ("POS") system. "Net Sales" means the total selling price of all services and products and all income of every kind and nature related to your BCS Makery, whether for cash, cash equivalents, or credit, and regardless of collection in the case of credit.
Proceeds from the sale of coupons, gift cards, gift certificates or vouchers shall be included in Net Sales when and at the Makery from which the coupons, gift cards, gift certificates or vouchers are eventually redeemed.
Net Sales exclude the following: complimentary products and services (provided that the aggregate amount of such products and services does not exceed 2% of Net Sales for the applicable week), tips and gratuities, and sums collected and actually paid by you for any sales or other excise tax imposed by any duly constituted government authority.
In the case of promotional discounts implemented by us at the BCS Makery, the amount actually paid by the guest after the discount, rather than the original amount, will be considered for purposes of the term Net Sales.
Net Sales also includes the proceeds of any business interruption insurance applicable to your BCS Makery.
In certain isolated instances we have negotiated a reduced Royalty Fee based on factors we determine relevant in our sole and absolute discretion.
Source: Item 5 — INITIAL FEES (FDD pages 15–23)
What This Means (2025 FDD)
According to Buff City Soap's 2025 Franchise Disclosure Document, the royalty fee is 6% of the Net Sales of the Franchised Business during the preceding month. Net Sales include the total selling price of all services and products, and all income of every kind related to the BCS Makery, whether paid in cash, cash equivalents, or credit, regardless of collection for credit sales. Proceeds from the sale of coupons, gift cards, gift certificates, or vouchers are included in Net Sales when redeemed at the Makery.
Net Sales exclude complimentary products and services, provided they do not exceed 2% of Net Sales for the applicable week, as well as tips, gratuities, and sales or excise taxes collected and paid to government authorities. For promotional discounts implemented by Buff City Soap, the amount actually paid by the customer after the discount is considered for Net Sales purposes. Net Sales also include proceeds from any business interruption insurance applicable to the franchisee's BCS Makery.
The royalty fee is currently payable monthly based on the prior calendar month's Net Sales and is due on the 15th of each month. Payment must be made via electronic funds transfer. However, Buff City Soap reserves 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. In certain isolated instances, Buff City Soap has negotiated a reduced Royalty Fee based on factors they determine relevant in their sole and absolute discretion.