Is the Royalty Fee paid to Buff City Soap refundable?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
| Effective Date: | ||
|---|---|---|
| Designated Area: | ||
| Initial Franchise Fee: | $50,000 | |
| Royalty Fee: | 6% of Net Sales | |
| Brand Fund Contribution: | 2% of Net Sales | |
| Local Marketing Expenditure: | 1% of Net Sales | |
| Market Introduction Budget: | $15,000 | |
| Offering Fee: | $10,000 per Makery Included in Offering | |
| Successor Fee: | 50% of Then-Current Initial Franchise Fee | |
| Transfer Fee: | 25% of Then-Current Initial Franchise Fee | |
| Operator: | [] | |
| Franchisee: | [], a [] | |
| Address for Notices: | [] | |
| Attention: | [] | |
| Email: | [] | |
| Franchisor: Address for Notices: | Buff City Soap Franchising, LLC Attn: Dorvin Lively 5294 Beltline Road, Suite 100 Dallas, TX 75254 phone: 1-844-283-2489 |
- (sss) "Royalty Fee" means the continuing monthly royalty fee Franchisee must pay to Franchisor as set forth in Section 4(b).
Source: Item 23 — Receipts (FDD pages 69–186)
What This Means (2025 FDD)
Based on the 2025 Buff City Soap Franchise Disclosure Document, the document does not explicitly state whether the royalty fee is refundable. The FDD details the royalty fee as 6% of net sales, as shown in the summary page. The document also defines the royalty fee as the continuing monthly royalty fee the franchisee must pay to the franchisor, as set forth in section 4(b).
While the FDD provides information on various fees, including the initial franchise fee of $50,000, the brand fund contribution of 2% of net sales, and the local marketing expenditure of 1% of net sales, it does not specify the conditions under which the royalty fee might be refundable. The agreement outlines the franchisee's obligations regarding the payment of the royalty fee but remains silent on its refundability.
A prospective Buff City Soap franchisee should directly ask the franchisor about the refundability of the royalty fee, including specific scenarios or conditions under which a refund may be possible. Understanding the franchisor's policy on royalty fee refunds is crucial for making an informed investment decision.