To whom are the Technology Maintenance, Updates, and Upgrades fees paid 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. |
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 Maintenance, Updates, and Upgrades fees are paid to vendors as incurred. These fees are estimated to be $1,000 annually for hardware and $1,000 biannually for software. This covers the costs of optional or required maintenance, updating, or upgrading of hardware and software, but it does not cover credit card processing fees.
Prospective Buff City Soap franchisees should note that these technology costs are in addition to the monthly Technology Fee of $500, which covers pass-through costs and overhead for technology provided by Buff City Soap, such as software licenses, database management, software maintenance, internet/Wi-Fi, cyber security/firewalls, music copyrights, and general IT support. The Technology Fee is invoiced monthly along with the Royalty Fee and Brand Fund Contributions.
It is important for potential franchisees to budget for both the ongoing monthly Technology Fee paid to Buff City Soap and the separate Technology Maintenance, Updates, and Upgrades fees paid to vendors. Understanding the scope of each fee and the potential for increases (with 60 days' notice for the Technology Fee) is crucial for accurate financial planning. Franchisees should also confirm which specific hardware and software components are covered by these fees and what additional technology-related expenses they might incur.