What is the required notice period before Buff City Soap can increase the Brand Fund Contribution?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
We may, at our sole option, increase the Brand Fund Contribution upon 60 days' prior notice to you, subject to the limitation stated under "Local Marketing" below.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 35–42)
What This Means (2025 FDD)
According to Buff City Soap's 2025 Franchise Disclosure Document, Buff City Soap may increase the Brand Fund Contribution, but they must provide franchisees with 60 days' prior notice before doing so. As of the issuance date of the FDD, all franchisees must pay a weekly Brand Fund Contribution equal to two percent (2%) of the Net Sales of the Franchised Business for the preceding week.
This means that Buff City Soap franchisees will have at least two months to prepare for any potential increase in the Brand Fund Contribution. This notice period allows franchisees to adjust their financial planning and business strategies accordingly. The Brand Fund is used for marketing, advertising, and related programs to promote the Buff City Soap brand.
It's important to note that while Buff City Soap must provide 60 days' notice for increasing the Brand Fund Contribution, the FDD also states that this is subject to limitations regarding local marketing expenditures. The minimum aggregate amount franchisees are required to spend on local marketing combined with Brand Fund contributions will not exceed 4% of Net Sales during any period of four consecutive fiscal quarters. This provides some level of predictability and control over the total marketing expenses for franchisees.