How must the Royalty Fee be paid to Buff City Soap?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
d non-refundable when paid.
OTHER FEES
| 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, which is 6% of Net Sales, must be paid via electronic funds transfer. The Royalty Fee is currently payable monthly based on the prior calendar month's Net Sales and is due on the 15th of each month. However, Buff City Soap retains the right to modify the due date to every Friday for the preceding week, commencing Monday and closing Sunday, provided they give 60 days' prior written notice.
This means that as a Buff City Soap franchisee, you are obligated to remit 6% of your gross sales (less specific exclusions) to Buff City Soap on a monthly basis via electronic funds transfer. It is important to remain aware of any potential changes to the payment schedule, as Buff City Soap can switch to a weekly payment cycle with proper notification.
Electronic funds transfer is a common method for royalty payments in the franchise industry, offering convenience and security for both the franchisee and franchisor. Franchisees should ensure they have the necessary banking arrangements in place to facilitate these electronic payments to avoid any late payment penalties or disruptions to their franchise agreement. Staying informed about any changes to the payment terms is crucial for maintaining a good standing with Buff City Soap.