Under what conditions can Buff City Soap increase the Technology Fee?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
from you and contribute them to the Brand Fund.
-
- Technology Fee. The Technology Fee covers the pass-through costs plus overhead of access to technology we provide to each BCS Makery and franchisee, currently including without limitation software licenses, database management, software maintenance, internet/Wi-Fi, cyber security/firewalls, music copyrights, and general IT support. The current fee is a minimum of $500 per month, which we reserve the right to increase upon 60 days' notice. The Technology Fee will be invoiced each month wi
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 subject to change. The current minimum Technology Fee is $500 per month. Buff City Soap retains the right to increase this fee, provided they give franchisees 60 days' notice before the increase goes into effect. This fee covers the costs and overhead associated with providing technology to each Buff City Soap location, including software licenses, database management, software maintenance, internet/Wi-Fi, cybersecurity, music copyrights and general IT support.
This policy means that a prospective Buff City Soap franchisee should be aware that their monthly expenses for technology could rise during the term of their franchise agreement. While the FDD does not specify a limit to how much the Technology Fee can be increased, the 60-day notice provides some time for franchisees to adjust their budgets accordingly. It is important for potential franchisees to factor in potential increases to this fee when assessing the overall profitability of a Buff City Soap franchise.
Franchisees should inquire about the historical frequency and magnitude of Technology Fee increases to better understand the potential financial impact on their business. Understanding the factors that might trigger an increase, such as upgrades to software or cybersecurity measures, can also help franchisees plan for future expenses. It is also important to note that the Technology Fee is invoiced monthly along with the Royalty Fee and Brand Fund Contributions.