factual

What rights does the Development Agreement for Buff City Soap grant to the Developer during the Initial Term?

Buff_City_Soap Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (b) Reserved Rights. Franchisor retains all rights inside and outside the Territory except those that are expressly granted to Developer in this Agreement. Without limiting Franchisor's and its Affiliates' rights described in this Section 2(b), Franchisor and its Affiliates and any other authorized Person may, among other things:
    • (1) Advertise and promote the System within and outside the Territory;
  • (2) Operate, and license others to operate, Buff City Soap Makeries at any location outside the Territory, including locations that are adjacent to the Territory;
  • (3) Except for the restriction against the establishment of another Buff City Soap Makery in the Territory, offer and sell, and authorize others to offer and sell, approved collateral products and services, including those offered and sold at Buff City Soap Makeries (such as the Products and other Buff City Soap merchandise), under the Marks or other trademarks at or from any location or through any channel of distribution (including, but not limited to, grocery stores, club stores, convenience stores, wholesale, hospitals, health care facilities and fitness centers, airports, salons, business (e.g. office building), military installations, military commissaries, universities, schools, the Internet (or any other existing or future form of electronic commerce), other retail locations and other retail facilities such as kiosks or multi-brand facilities providing a limited number or representative sample of the products and services normally offered by an Buff City Soap Makery);
  • (4) Establish and operate, and license others to establish and operate, any business other than a Buff City Soap Makery, including other retail stores or retail-related businesses, under the Marks or under other marks, including retail stores or other businesses that Franchisor or its Affiliates may operate, acquire, be acquired by, or be merged or consolidated with; and;
  • (5) Establish and operate, and license others to establish and operate, Buff City Soap Makeries and other retail facilities in any Reserved Area whether or not located within the Territory.
  • 3. TERM. Unless sooner terminated in accordance with this Agreement, the Term will commence on the Effective Date described in the Summary Page and will expire on the earlier of the expiration date set forth in the Summary Page or the date upon which Developer opens for operation the cumulative number of MAKERIES in the Territory set forth in the Development Schedule.

Source: Item 23 — Receipts (FDD pages 69–186)

What This Means (2025 FDD)

According to the 2025 Buff City Soap Franchise Disclosure Document, the franchisor retains all rights inside and outside the territory granted to the developer, except those expressly granted to the developer in the agreement. This means that while a developer is given certain rights to develop Buff City Soap locations, Buff City Soap retains significant control and can operate and license others outside the developer's territory.

Buff City Soap and its affiliates have the right to advertise and promote the Buff City Soap system both within and outside the developer's territory. They can also operate or license others to operate Buff City Soap makeries at any location outside the developer's territory, including locations adjacent to it. Furthermore, Buff City Soap can offer and sell approved collateral products and services through various channels of distribution, such as grocery stores, the internet, and other retail locations, without restriction, except for establishing another Buff City Soap makery within the territory.

Buff City Soap also retains the right to establish and operate any business other than a Buff City Soap makery, including other retail stores, under the Buff City Soap marks or other trademarks. They can also establish and operate Buff City Soap makeries and other retail facilities in any reserved area, whether or not located within the developer's territory. The initial term of the agreement commences on the effective date and expires either on the date specified in the summary page or when the developer opens the cumulative number of makeries in the territory as outlined in the development schedule.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.