Is there a Lease Rider included as part of the Buff City Soap Franchise Agreement?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
oes hereby acknowledge receipt of this addendum.**
BUFF CITY SOAP FRANCHISING, LLC []## RIDER TO THE BUFF CITY SOAP FRANCHISING, LLC FRANCHISE AGREEMENT FOR USE IN HAWAII
THIS RIDER is made and entered into on, 20 (the "Effective Date") by and between BUFF CITY SOAP FRANCHISING, LLC, a limited liability company formed under the laws of the State of Delaware, with its principal business address at 5294 Beltline Road, Suite 100, Dallas, Texas 75254, "our"), and ("we," "us,"' or, , a [corporation, limited liability company, general partnership, or limited partnership] formed under the laws of the State of, [or proprietorship] its principal business address at with a sole ("you" or "your"). HAWAII LAW MODIFICATIONS Hawaii has required we defer initial fees. The deferred receipt of the initial fees shall include all fees paid to the franchisor or related parties until the franchisor has completed all of their pre-opening obligations and the franchisee is open for business. The franchisor shall not collect the Initial Franchise Fee for any franchise in Hawaii that has not opened for business. The deferred receipt of initial fees shall also include any Initial Franchise Fee associated with Area Development Agreement fees. As each franchise is opened for business, the franchisor may collect the (pro rated) Initial Franchise Fee for the facility opened. The franchisor shall not collect the Initial Franchise Fee for any franchise in Hawaii that has not opened for business. No statement, questionnaire or acknowledgement signed or agreed to by a franchisee in connection in the inducement, or (ii) disclaiming reliance on behalf of the with the commencement of the franchise relationship shall have the effect of: (i) waiving any claims under any applicable state franchise law, including fraud Franchisor. This provision supersedes any other term of any document executed in connection with the franchise. IN WITNESS WHEREOF, the parties have executed and delivered this Rider on the dates noted below, to be effective as of the Effective Date.
Source: Item 6 — , Securities Offering Fee, in the amount column is revised to state the following: (FDD pages 216–303)
What This Means (2025 FDD)
According to the 2025 Buff City Soap Franchise Disclosure Document, a Lease Rider is not explicitly mentioned as a standard part of the franchise agreement. However, there is a "RIDER TO THE BUFF CITY SOAP FRANCHISING, LLC FRANCHISE AGREEMENT FOR USE IN HAWAII." This rider addresses specific legal modifications required by Hawaii state law, particularly concerning the deferral of initial fees until the franchisor has fulfilled its pre-opening obligations and the franchisee is open for business.
This Hawaii Rider ensures that Buff City Soap does not collect initial franchise fees for any location in Hawaii until it is operational. It also states that no statement or acknowledgement signed by the franchisee can waive rights under applicable state franchise law or disclaim reliance on the franchisor. This suggests that Buff City Soap adapts its franchise agreement to comply with specific state regulations, and franchisees should be aware of any state-specific addenda or riders that may apply to their agreement.
While a general Lease Rider isn't mentioned, the presence of state-specific riders indicates that Buff City Soap is willing to modify the standard franchise agreement to comply with local laws. A prospective franchisee should inquire whether a lease rider or addendum is necessary or available in their specific state, and what specific terms it would contain. This is especially important since leasing commercial space is a critical step in establishing a Buff City Soap location, and the terms of the lease can significantly impact the franchisee's financial obligations and operational flexibility.