How is the Protected Area size determined for a Buff City Soap franchise?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
The franchise you are granted will be for one specified location approved by us. When you sign the Franchise Agreement, unless you have selected and we have accepted the precise location of the Franchised Business, we will designate an area defined by zip codes, a map, shopping areas, or other means (the "Designated Area"). You must find a location acceptable to us within the Designated Area during the 60-day period after you sign the Franchise Agreement. During this period, we will not grant a BCS Makery franchise to any other party and our Affiliates will not open or develop another BCS Makery within the Designated Area. You must find a location acceptable to us within the Designated Area. When we accept the location within the Designated Area you propose, we will fix the boundaries of a "Protected Area" for the Franchised Business.
There will be no minimum geographic size to your Designated Area or Protected Area. The Protected Area will be determined by the demographics and population size specific to your location. The minimum population size of the target demographic group within your Protected Area is determined on a case-by-case basis depending on the results of demographic research. Protected Areas will range in size from a site-specific location, i.e., a street address, to a block, a zip code, or a defined measurable area, depending on where your Makery is located. Typically, Makeries located in metropolitan areas will receive a smaller Protected Area than Makeries located in suburban/rural areas. Your Protected Area will be described in Exhibit G to your Franchise Agreement. During the term of your Franchise Agreement, and provided that you are not in default, we will not establish or license another person to establish another Makery within your Protected Area.
Source: Item 12 — TERRITORY (FDD pages 43–45)
What This Means (2025 FDD)
According to Buff City Soap's 2025 Franchise Disclosure Document, franchisees do not receive an exclusive territory. Instead, franchisees are granted a Protected Area for a location that Buff City Soap approves. After signing the Franchise Agreement, the franchisor designates an area defined by zip codes, maps, shopping areas, or other means, referred to as the "Designated Area." The franchisee then has 60 days to find a location acceptable to Buff City Soap within the Designated Area. During this 60-day period, Buff City Soap will not grant another franchise or open a company-owned store within the Designated Area. Once a location is approved, Buff City Soap will define the boundaries of the Protected Area for the franchised business.
The size of the Protected Area is determined by the demographics and population size specific to the location, assessed on a case-by-case basis through demographic research. There is no minimum geographic size for either the Designated Area or the Protected Area. The Protected Area can range from a site-specific location, such as a street address, to a block, a zip code, or a defined measurable area, depending on the location of the Makery. Typically, stores in metropolitan areas will have smaller Protected Areas compared to those in suburban or rural areas. The specifics of the Protected Area will be detailed in Exhibit G of the Franchise Agreement.
Buff City Soap retains significant rights within and outside the Protected Area, except for those expressly granted to the franchisee in the Franchise Agreement. This includes the right to advertise and promote the system, operate and license other stores outside the Protected Area, and offer and sell products through various channels of distribution. The franchisee receives no compensation if Buff City Soap exercises these reserved rights. Furthermore, Buff City Soap can establish stores in Reserved Areas like military bases, airports, shopping malls, and hospitals, even if these are located within a franchisee's Protected Area. This means a Buff City Soap franchisee could face competition from other franchisees, company-owned stores, or alternative channels of distribution.