Risk Score
Pending analysis
Investment Range
$395,427 - $1,278,424
Franchise Fee
$25,000
Total US Locations
260
Business Summary
Buff City Soap Franchising, LLC offers franchises to operate a retail shop, known as a BCS Makery or Makery, that sells upscale, plant-based body, facial, bath, shower, laundry, personal, and home care products. These products are free of harsh chemicals, detergents, and animal fats. Most Buff City Soap products are made on-site in a designated Soap Makery area, allowing customers to observe the production. The business also provides customization services, private parties, and soap-making classes.
Corporate History
Buff City Soap Franchising, LLC was formed as a Delaware limited liability company on May 7, 2018. It is a wholly-owned subsidiary of Buff City Soap Holdings, LLC, and an indirect, wholly-owned subsidiary of Buff City Soap InvestCo, LLC, which acquired the Buff City Soap franchise system on November 25, 2019. Buff City Soap Franchising, LLC has been offering BCS Makery retail franchises in the United States since May 2018. Before this, its predecessor offered licenses for Buff City Soap Makeries, which were later assigned to Buff City Soap Franchising, LLC through a reorganization.
Financial Overview
Investment Range
$395,427 - $1,278,424
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$50,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$76,919
Equipment Costs (High)
$223,500
Working Capital
$79,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The franchisor's financial condition, as reflected in its financial statements, calls into question Buff City Soap Franchising, LLC's financial ability to provide services and support to its franchisees.
Financing Details
Buff City Soap Franchising, LLC does not offer any direct or indirect financing to its franchisees. Buff City Soap Franchising, LLC also does not guarantee any notes, leases, or other obligations for its franchisees.
Performance Metrics
Total US Locations
260
Franchised Units
251
Corporate Units
9
Avg Square Footage
2,750
Franchising Since
2018
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Buff City Soap Franchising, LLC has no litigation history to report. No administrative, criminal, or material civil actions are required to be disclosed in Item 3 of its FDD.
Bankruptcy History
Buff City Soap Franchising, LLC has no bankruptcy history to report. No bankruptcy proceedings of the franchisor or its key personnel are required to be disclosed in Item 4 of its FDD.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew, Buff City Soap Franchising, LLC franchisees must provide six months' advance notice. They must not be in default or have been in default within 12 months prior to their election, and must have substantially complied with the Franchise Agreement. Their Makery must not be in the bottom quartile of average monthly Net Sales of all Buff City Soap Makeries operating during the 12 months prior to their election. Franchisees must also sign Buff City Soap Franchising, LLC's then-current form of the Franchise Agreement, execute a general release of claims, complete any required retraining programs, and provide documentation confirming their right to possess the premises. A renewal fee of 50% of the then-current initial franchise fee is required. The new franchise agreement may have materially different terms, conditions, and fees. Additionally, at the end of the initial and first renewal terms, franchisees must upgrade their BCS Makery to current entry standards and design elements, and install the current equipment and point-of-sale systems.
Training & Support Program
Franchisor Assistance
Buff City Soap Franchising, LLC provides franchisees with pre-opening assistance, including advice on site selection, review and approval of proposed sites, and approval of lease agreements. It furnishes standards for Makery design, layout, and décor, and reviews site plans. Franchisees receive initial corporate training (up to seven days) and on-site pre-opening training (up to seven days per Makery for the first two locations). Buff City Soap Franchising, LLC also provides a template for market introduction plans. Post-opening, franchisees get ongoing access to manuals and information on approved products and suppliers. Buff City Soap Franchising, LLC offers training programs for replacement management and conducts periodic field evaluations and quality assurance inspections. It administers a Brand Fund for national and regional advertising and requires local marketing expenditures. Franchisees are also provided with required Technology Systems, including a point-of-sale system, and access to an Intranet communication platform.
Initial Training Hours
67
Training Location
Franchisor headquarters in Dallas, TX, virtually, or at a Buff City Soap Makery, potentially including the franchisee's own location.
Ongoing Support
After opening, Buff City Soap Franchising, LLC franchisees receive ongoing access to manuals and its secure website, which is updated periodically. Buff City Soap Franchising, LLC provides training programs for replacement management personnel and conducts additional and remedial training as requested or deemed necessary. Periodic field evaluations and quality assurance inspections of the Makery are conducted to ensure compliance with System Standards. Buff City Soap Franchising, LLC also maintains and administers a Brand Fund for general marketing and development.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Absentee Allowed
Territory Type
Protected
Territory Size Requirements
Buff City Soap Franchising, LLC's Protected Areas have no minimum geographic size and are determined on a case-by-case basis by demographics and population size. These areas can range from a site-specific street address, to a block, a zip code, or a defined measurable area. Makeries in metropolitan areas typically receive smaller Protected Areas compared to those in suburban or rural areas.
Staffing Notes
Buff City Soap Franchising, LLC requires franchisees to designate and retain an Operator and a General Manager to manage the Makery. The Operator, who does not need to be an owner, must complete Buff City Soap Franchising, LLC's training, sign a Confidentiality and Non-Compete Agreement, and cannot be involved in or supervise other businesses outside of Buff City Soap Makeries. The General Manager, also not required to be an owner, must be qualified to manage, complete Buff City Soap Franchising, LLC's training, and report to the Operator. Franchisees are responsible for hiring, training, and supervising additional personnel and ensuring they wear uniforms compliant with Buff City Soap Franchising, LLC's standards. Up to two additional personnel, such as store trainers and soap makers, are also required to attend initial training.