When is the Technology Fee due for a Buff City Soap franchise?
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. |
| Brand Fund Contribution (See Note 2) | 2% 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 increase the Brand Fund Contribution upon 60 days' written notice to you, but the Brand Fund Contribution, when combined with the Local Marketing Expenditure requirement, will not exceed 4% of Net Sales for the initial term of your Franchise Agreement. We have the right to modify the due date to every Friday based on Net Sales for the preceding week (commencing on Monday and closing on Sunday) upon 60 days prior written notice to you. |
| Local Marketing Expenditure (See Note 2) | 1% of Net Sales | Payable to vendors as incurred | We have the right to request copies of documentation evidencing your compliance with the Local Marketing Expenditure. |
| Technology Fee (See Note 3) | The monthly minimum is currently $500. | Monthly with the Royalty Fee payment | Payment must be made via electronic funds transfer. We reserve the right to modify the Technology Fee upon 60 days' prior written notice to you. We have the right to modify the due date to every Friday to coincide with payment of the Royalty Fee and Brand Fund Contribution. upon 60 days prior written notice to Franchisee. |
| Type of Fee | Amount* | Due Date | Remarks |
| (See Note 13) | |||
| Technology Maintenance, Updates and Upgrades | $1,000 annually for hardware and $1,000 biannually for software | Payable to vendors as incurred | This is our estimate of the total annual/biannual cost to you of optional or required maintenance, updating |
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 Technology Fee is due monthly along with the Royalty Fee payment. The current minimum Technology Fee is $500 per month. These payments must be made via electronic funds transfer. While currently payable on the 15th of each month based on the prior calendar month's Net Sales, Buff City Soap retains the right to modify the due date to every Friday to coincide with payment of the Royalty Fee and Brand Fund Contribution, provided they give 60 days prior written notice to the franchisee.
The Technology Fee covers the costs and overhead of providing technology to each Buff City Soap location and franchisee. This includes software licenses, database management, software maintenance, internet/Wi-Fi, cyber security/firewalls, music copyrights, and general IT support.
Buff City Soap also charges for Technology Maintenance, Updates and Upgrades. These fees are paid to vendors as incurred, and are estimated to be $1,000 annually for hardware and $1,000 biannually for software.