Under what grounds can a Buff City Soap franchisee terminate the Development Agreement?

According to Buff City Soap's 2025 Franchise Disclosure Document, a franchisee may terminate the Development Agreement under any grounds permitted by applicable law. This means that the specific reasons allowing a franchisee to terminate the agreement are determined by the laws governing such agreements in the relevant jurisdiction.

This provision offers some flexibility to the franchisee, as it allows them to rely on legal protections afforded by federal, state, and local laws. However, it also places the onus on the franchisee to be aware of these applicable laws and to determine whether grounds for termination exist under those laws. It is important to note that the FDD does not specify what these grounds might be, as they can vary significantly depending on the jurisdiction.

In contrast, Buff City Soap can terminate the Development Agreement if the franchisee defaults or fails to comply with their obligations under the Development Agreement, or if a Franchise Agreement between Buff City Soap and the franchisee or their affiliate is terminated. This highlights a disparity in termination rights, where the franchisor has specific contractual grounds for termination, while the franchisee's rights are dependent on broader legal principles. A prospective franchisee should consult with a legal professional to understand their rights and obligations regarding termination under applicable law.