When will the payment of Initial Franchise/Development Fees be deferred for a Buff City Soap franchise in Maryland?

According to the 2025 Buff City Soap Franchise Disclosure Document, for franchises governed by Maryland Franchise Registration and Disclosure Law, the payment of Initial Franchise/Development Fees will be deferred until Buff City Soap has met its initial obligations to the franchisee, and the franchisee has commenced business operations. This requirement was imposed by the Maryland Office of the Attorney General Securities Division due to Buff City Soap's financial condition.

This deferral of fees is designed to protect prospective franchisees in Maryland, ensuring that they do not pay the initial fees until Buff City Soap has fulfilled its pre-opening obligations and the store is ready to start business. This provides a level of financial security for the franchisee, as they are not investing heavily upfront before the franchisor has delivered on their promises.

It's important to note that this deferral is specific to Maryland due to the state's franchise laws and the franchisor's financial condition at the time of the FDD's issuance. Prospective franchisees should carefully review the addendum to the Franchise Agreement for Maryland to fully understand their rights and obligations regarding the payment of initial fees.