Under what conditions can Buff City Soap modify the due date for the Technology Fee?

Question

Accepted Answer

| 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. |
| Local Marketing Expenditure (See Note 2) | 1% of Net Sales | Payable to vendors as incurred | We have the right to request copies of documentation evidencing your compliance with the Local Marketing Expenditure. |
| Technology Fee (See Note 3) | The monthly minimum is currently \$500. | Monthly with the Royalty Fee payment | Payment must be made via electronic funds transfer. We reserve the right to modify the Technology Fee upon 60 days' prior written notice to you. We have the right to modify the due date to every Friday to coincide with payment of the Royalty Fee and Brand Fund Contribution. upon

Source: Item 5 — INITIAL FEES (FDD pages 15–23)

Under what conditions can Buff City Soap modify the due date for the Technology Fee?

Answer from 2025 FDD Document

What This Means (2025 FDD)

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.
Local Marketing Expenditure (See Note 2)	1% of Net Sales	Payable to vendors as incurred	We have the right to request copies of documentation evidencing your compliance with the Local Marketing Expenditure.
Technology Fee (See Note 3)	The monthly minimum is currently $500.	Monthly with the Royalty Fee payment	Payment must be made via electronic funds transfer. We reserve the right to modify the Technology Fee upon 60 days' prior written notice to you. We have the right to modify the due date to every Friday to coincide with payment of the Royalty Fee and Brand Fund Contribution. upon