What section of the Buff City Soap Franchise Agreement outlines the 'Brand Fund Contribution'?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
- (g) "Brand Fund Contribution" means the continuing monthly contribution to the Brand Fund Franchisee must pay to Franchisor as set forth in Section 4 and in the amount set forth in the Summary Page.
10. MARKETING.
(a) Brand Fund. Franchisor administers a Brand Fund for the creation and development of marketing, advertising, and related programs, campaigns and materials, including digital, print, Internet and Social Media, as well as the planning and purchasing of national, regional, and/or local advertising. Franchisee must contribute the Brand Fund Contribution to the Brand Fund as set forth in Section 4(c) of this Agreement. Franchisor may, at its sole option, increase the Brand Fund Contribution upon 60 days' prior notice to Franchisee, provided such increase will not exceed 4%, as further described in Section 10(d).
Source: Item 23 — Receipts (FDD pages 69–186)
What This Means (2025 FDD)
According to the 2025 Buff City Soap Franchise Disclosure Document, the Brand Fund Contribution is outlined in Section 4 and Section 10 of the Franchise Agreement. Specifically, Section 10(a) states that franchisees must contribute to the Brand Fund as set forth in Section 4(c) of the agreement. Section 1 defines 'Brand Fund Contribution' as the continuing monthly contribution to the Brand Fund that the franchisee must pay to the franchisor, as detailed in Section 4 and the Summary Page.
Section 10(a) indicates that Buff City Soap administers a Brand Fund for marketing and advertising programs, including digital, print, internet, and social media. The franchisor may increase the Brand Fund Contribution with 60 days' notice, but such increase will not exceed 4%, as described in Section 10(d). The franchisor directs all initiatives related to positioning the brand using the Brand Fund, including advertising and marketing programs, selection of geographic and media markets, and media placement.
This means that as a Buff City Soap franchisee, you are obligated to make monthly contributions to the Brand Fund, which is used for marketing and advertising efforts to promote the Buff City Soap brand. The exact amount and terms of this contribution are detailed in Section 4(c) of the Franchise Agreement and the Summary Page. While the franchisor can increase this contribution, there are limitations in place to protect franchisees from excessive increases. Prospective franchisees should carefully review Section 4(c) and the Summary Page to understand the specific financial obligations and potential increases related to the Brand Fund Contribution.