Does Buff City Soap have the right to approve the lease agreement for a Buff City Soap Makery premises?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
We reserve the right to review, and in our reasonable judgment, approve each letter of intent, lease, sublease or purchase agreement (and any renewals and amendments thereof) that will govern your acquisition, occupancy and/or lawful possession of the Makery premises. (Franchise Agreement Section 5(c))
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 reserves the right to review and approve the lease agreement for a Makery premises. Specifically, Buff City Soap may review and, in its reasonable judgment, approve each letter of intent, lease, sublease, or purchase agreement, including any renewals and amendments, that governs the franchisee's acquisition, occupancy, and lawful possession of the Makery premises.
This provision grants Buff City Soap significant control over the location and terms of the franchisee's business. It ensures that the location aligns with Buff City Soap's brand standards and strategic interests. The FDD also states that Buff City Soap does not select the site for the Franchised Business. The franchisee is responsible for selecting the site for their location and submitting information on the site approval form included in the Manuals. The proposed site must comply with Buff City Soap's site selection criteria, which includes demographic characteristics, traffic patterns, parking, character of neighborhood, competition, and the site's physical characteristics.
For a prospective franchisee, this means that while they have the initial responsibility for finding a location, Buff City Soap has the final say in approving the site and the lease terms. This process helps to protect the brand's image and ensures that each location has the best chance of success. The franchisee must propose a site within 60 days after the effective date of the Franchise Agreement and acquire the right to occupy the site within 30 days after Buff City Soap's approval of the site. Failure to do so may result in termination of the Franchise Agreement.
Buff City Soap also reviews the franchisee's site plan and final plans and specifications for conformity to System Standards. This includes standards for finishes, specifications for layout of the interior, mechanical and electrical systems, equipment, décor and ironwork and signs for a prototype Franchised Business. Buff City Soap provides the specifications and a list of vendors, but the franchisee is responsible for ordering equipment, signs, fixtures, opening inventory and supplies and will pay the vendors directly.