How will Buff City Soap prorate development fees in Washington?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
that will be adjusted annually for inflation). In addition, a noncompetition covenant is void and unenforceable against an independent contractor of a franchisee under RCW 49.62.030 unless the independent contractor's earnings from the party seeking enforcement, when annualized, exceed $250,000 per year (an amount that will be adjusted annually for inflation). As a result, any provisions contained in the franchise agreement or elsewhere that conflict with these limitations are void and unenforceable in Washington.
RCW 49.62.060 prohibits a franchisor from restricting, restraining, or prohibiting a franchisee from (i) soliciting or hiring any employee of a franchisee of the same franchisor or (ii) soliciting or hiring any employee of the franchisor. As a result, any such provisions contained in the franchise agreement or elsewhere are void and unenforceable in Washington.
No statement, questionnaire or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of: (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 6 — , Securities Offering Fee, in the amount column is revised to state the following: (FDD pages 216–303)
What This Means (2025 FDD)
The 2025 Buff City Soap Franchise Disclosure Document does not specify how development fees are prorated in Washington. However, the document includes an addendum modifying the franchise agreement for use in Washington, addressing non-competition covenants, franchisee solicitation of employees, and waivers of claims under state franchise law.
While the addendum addresses specific legal considerations for Washington franchisees, it does not detail the proration of development fees. This suggests that the standard proration policies, if any, would apply unless otherwise stipulated in the agreement.
A prospective Buff City Soap franchisee in Washington should directly ask the franchisor about the specific terms for prorating development fees, as this information is not explicitly covered in the provided FDD excerpts. Understanding these terms is crucial for financial planning and assessing the overall investment.