Is Buff City Soap required to spend any amount on advertising in a franchisee's Protected Area?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
We will conduct advertising in regional and national media using the funds available in the Brand Fund described below. We may use print, broadcast and on-line or electronic media, social media, direct mail and other promotional materials as funds permit. We will utilize a combination of in-house and advertising agency resources to produce advertising. We are not required to spend any amount on advertising in your Protected Area.
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 is not required to spend any amount on advertising in a franchisee's protected area. However, Buff City Soap does conduct advertising in regional and national media using funds available in the Brand Fund. These advertising efforts may include print, broadcast, online or electronic media, social media, direct mail, and other promotional materials.
Prospective franchisees should note that while Buff City Soap is not obligated to spend specifically within their protected area, franchisees themselves are required to participate in local marketing efforts. Franchisees must make a Local Marketing Expenditure, the amount of which is established periodically by Buff City Soap. The minimum aggregate amount required for Local Marketing Expenditure combined with contributions to the Brand Fund will not exceed 4% of Net Sales during any four consecutive fiscal quarters. As of the issuance date of the FDD, the initial Local Marketing Expenditure is 1% of Net Sales.
Buff City Soap may also require franchisees to participate in local or regional advertising cooperatives. Additionally, franchisees must participate in any advertising, marketing, and sales promotional programs that Buff City Soap develops and administers. These programs are in addition to the Local Marketing Expenditure and may include marketing promotions, product promotions, specialized product offerings, and limited-time offers. Buff City Soap retains sole discretion in determining all phases of this advertising, marketing, and promotion.