What is the purpose of the Brand Fund administered by Buff City Soap?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
ored value cards, gift certificates, gift cards, or vouchers sold or distributed by other Buff City Soap locations and include the related proceeds in Net Sales strictly in accordance with the Standards and further comply with Franchisor's policies related to such coupons, stored value cards, gift certificates, gift cards and vouchers set forth in the Manuals. Franchisee will not issue or offer any gift certificate, gift card, stored value card, customer loyalty or retention program without Franchisor's prior written approval. Franchisee will utilize a vendor approved by Franchisor or its Affiliates for gift card processing. Any coupon offer proposed by Franchisee must be approved by Franchisor in writing prior to being offered.
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.
For the avoidance of doubt, Franchisee will ultimately be responsible for the costs associated with the placement of any such marketing and media for the Makery. The costs associated with such placement will be credited against Franchisee's Local Marketing Expenditure required pursuant to Section 10(d0 below.
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 is used for the creation and development of marketing, advertising, and related programs. These initiatives encompass various channels, including digital, print, internet, and social media, as well as the planning and purchasing of advertising at the national, regional, and local levels. Franchisees are required to contribute to this fund, as detailed in the franchise agreement.
Buff City Soap directs all initiatives related to brand positioning 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 of resources.
The Brand Fund may cover costs related to product research and development, formulation, design, labeling, and packaging. It also supports agency services, market research, customer engagement, shop design, uniform design, customer service techniques, and focus groups. Additionally, the fund is used for creating video, audio, electronic, and written advertising, administering regional and national marketing programs, conducting customer surveys, supporting promotional events, purchasing online, social media, radio, television, and billboard advertising, employing marketing agencies, conducting community relations, maintaining websites, and other promotional activities deemed appropriate by Buff City Soap.
Franchisees should understand that while the Brand Fund aims to benefit the entire Buff City Soap system, there is no guarantee that expenditures in any specific area will be proportionate to the contributions from that area's franchisees. Additionally, individual locations may not directly benefit in proportion to their contributions. Buff City Soap retains the right to modify or terminate the Brand Fund, and franchisees should be aware of these terms and conditions.