What is the total Development Fee due for 2 Buff City Soap Makeries?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
velopment fees, other fees or other costs paid to us or to third parties. We do not provide any guarantees for any financing provided to you by third parties.
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- The initial franchise fee paid by you and other similarly situated Franchisees will be the same and is nonrefundable.
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- When you sign a Development Agreement, you must agree to develop a minimum of 2 Makeries and pay us a non-refundable development fee equal to 100% of the initial franchise fee for the first BCS Makery to be developed ($50,000) and 50% of the initial franchise fee for each additional BCS Makery ($25,000 if developing 2 Makeries) to be developed under the Development Agreement. The total Development Fee due for 2 Makeries is $75,000. When you sign the Franchise Agreement for your first BCS Makery, we will credit a portion of the development fee payment to satisfy the initial franchise fee due under the first Franchise Agreement. When you sign each additional Franchise Agreement under the Development Agreement, you will sign the then-current form of franchise agreement that we offer, which may contain materially different terms. In addition, you will pay us the balance due for the initial franchise fee
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 24–28)
What This Means (2025 FDD)
According to Buff City Soap's 2025 Franchise Disclosure Document, a Development Agreement requires a minimum commitment to develop at least two Buff City Soap Makeries. The development fee is calculated as 100% of the initial franchise fee for the first location, which is $50,000, and 50% of the initial franchise fee for each additional location. Therefore, for developing two Makeries, the second location incurs a fee of $25,000.
In total, the Development Fee due for two Buff City Soap Makeries amounts to $75,000. This fee is non-refundable and must be paid to Buff City Soap when the Development Agreement is signed. However, when the Franchise Agreement is signed for the first location, a portion of the development fee is credited towards the initial franchise fee due for that first Makery.
For a prospective franchisee, this means an upfront investment of $75,000 is required before commencing development. It is important to note that the franchisee will need to sign the then-current form of the franchise agreement for each additional location, which may contain materially different terms. Additionally, the franchisee will need to pay the balance due for the initial franchise fee under each applicable Franchise Agreement ($25,000 if developing 2 Makeries), which will be the initial franchise fee minus the applicable portion of the development fee.