Is there a transfer fee required by Buff City Soap, and what does it cover?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
eral Release | | Exhibit D | Form of Non-Disclosure and Non-Use Agreement | | Exhibit E | Disclosure Document Addenda Required by Certain States | | Exhibit K | Training Liability Waiver |
ITEM 23
RECEIPT
Duplicate copies of the receipt appear after the exhibits as Exhibit K to this disclosure document.
EXHIBIT A FRANCHISE AGREEMENT
Franchise Agreement
SUMMARY PAGE
These pages summarize certain provisions of the Franchise Agreement to which they are attached. The Franchise Agreement's provisions will control in the event of any conflict.
| Effective Date: | ||
|---|---|---|
| Designated Area: | ||
| Initial Franchise Fee: | $50,000 | |
| Royalty Fee: | 6% of Net Sales | |
| Brand Fund Contributi |
Source: Item 23 — Receipts (FDD pages 69–186)
What This Means (2025 FDD)
According to Buff City Soap's 2025 Franchise Disclosure Document, a transfer fee is required. The amount of the transfer fee depends on whether the franchisee has an Area Development Agreement or a Franchise Agreement.
For an Area Development Agreement, the transfer fee is $12,500 as stated on the summary page. For a Franchise Agreement, the transfer fee is 25% of the then-current initial franchise fee. Given that the initial franchise fee is $50,000, the transfer fee would be $12,500 (25% of $50,000).
Prospective franchisees should note that transfer fees are common in franchising. This fee is typically paid to the franchisor to cover the costs associated with reviewing and approving the transfer of the franchise to a new owner. It is important to clarify with Buff City Soap what specific costs the transfer fee covers and what conditions apply to the transfer of a franchise.