When is the Buff City Soap Royalty Fee currently due?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (See Note 13) | Amount* | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee (See Note 1) | 6% of Net Sales | Currently payable monthly based on the prior calendar month's Net Sales and due on the 15th of each month | Payment must be made via electronic funds transfer. We reserve the right to modify the due date to every Friday for the preceding week commencing Monday and closing Sunday upon 60 days' prior written notice. |
Source: Item 5 — INITIAL FEES (FDD pages 15–23)
What This Means (2025 FDD)
According to Buff City Soap's 2025 Franchise Disclosure Document, the Royalty Fee is currently due monthly. Specifically, it is payable monthly based on the prior calendar month's Net Sales and due on the 15th of each month. Payment must be made via electronic funds transfer.
Buff City Soap, however, reserves the right to modify the due date to every Friday for the preceding week commencing Monday and closing Sunday upon 60 days' prior written notice. This means that while currently franchisees pay once a month, Buff City Soap could change this to weekly payments with advance notice.
This potential change to weekly payments could impact a franchisee's cash flow management. Franchisees should be prepared for either monthly or weekly royalty fee payments and factor this into their financial planning. Understanding the conditions under which Buff City Soap can make these changes is crucial for managing the franchise effectively.