What is the weekly Brand Fund Contribution required from Buff City Soap franchisees?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
We have established and administer a Brand Fund for the creation and development of marketing, advertising, and related programs, campaigns and materials (the "Brand Fund"). As of the issuance date of this disclosure document, all franchisees must pay us a weekly Brand Fund Contribution equal to two percent (2%) of the Net Sales of the Franchised Business for the preceding week. No franchisees contribute a different amount or a different rate. We will direct all initiatives relating to the positioning of the Brand using the Brand Fund. We will account for all Brand Fund Contributions we collect in a separate account. The Brand Fund will not be used to defray any of our general operating expenses, except for reasonable salaries, administrative costs, travel expenses, and overhead as we may incur in activities related to the administration of the Brand Fund and its programs. We may use the Brand Fund to pay the costs of research, agency of record services, market research, creation and production of video, audio, electronic, and written advertising and marketing programs; administration of regional, multi-regional, and national advertising and marketing programs, Product and customer research and surveys, and testing and related development activities; promotional events; purchasing and participating in online, Social Media, radio, television, and billboard advertising and programming; employing marketing, advertising and promotional agencies to assist therewith; conducting community relations activities; and supporting public relations, maintenance of the System websites, and online presence; and such other advertising, marketing, and promotional activities as we determine are appropriate for BCS Makeries and the Marks and System under which they operate. You will ultimately be responsible for the costs associated with the placement of any such marketing and media for the Makery in that you will either reimburse us for media and marketing placement or directly pay a third-party advertiser for placement of the media or marketing materials. The Brand Fund will furnish you with samples of advertising, marketing formats, promotional formats, and other materials at no additional cost when we consider it appropriate. Multiple copies of such materials will be provided to you at your cost plus any related shipping, handling, and storage charges. We may, at our sole option, increase the Brand Fund Contribution upon 60 days' prior notice to you, subject to the limitation stated under "Local Marketing" below.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 35–42)
What This Means (2025 FDD)
According to Buff City Soap's 2025 Franchise Disclosure Document, franchisees are required to contribute to the Brand Fund. As of the issuance date of the FDD, all franchisees must pay a weekly Brand Fund Contribution equal to two percent (2%) of the Net Sales of the Franchised Business for the preceding week. No franchisees contribute a different amount or a different rate. These contributions are earmarked for marketing, advertising, and related programs.
The Brand Fund is managed by Buff City Soap, which directs initiatives related to brand positioning. The funds collected are kept in a separate account and are not used for the company's general operating expenses, except for reasonable salaries, administrative costs, travel expenses, and overhead related to administering the Brand Fund and its programs.
Buff City Soap has the option to increase the Brand Fund Contribution with 60 days' prior notice to franchisees, but this is subject to limitations regarding local marketing expenditures. The Brand Fund may be used for various advertising and marketing activities, including research, agency services, market research, creation of advertising materials, promotional events, online and social media advertising, and community relations. Franchisees are ultimately responsible for the costs associated with placing marketing and media for their Makery, either by reimbursing Buff City Soap or directly paying a third-party advertiser. Samples of advertising and marketing materials are provided at no additional cost, while multiple copies are provided at the franchisee's expense.