BUFF CITY SOAP

Item 7 in the 2024 FDD pegs initial investment at $395,427 to $1,278,424, covering build-out for those interactive 'Makery' layouts, equipment, and inventory sourced from the franchisor. Upfront franchise fee hits $50,000, followed by 6% royalty on gross sales, 2% brand fund, and ongoing tech fees like $500/month technology, $119 loyalty, $22 Appointedd, plus optional $474 COMO—potentially adding $10K+ annually for a mid-sized unit. System health looks solid: 262 franchised locations plus 9 corporate, up 4% from 252 in 2022, with just 2 terminations, 2 transfers, and 4 projected new units, signaling low churn in a niche personal care market targeting all ages and areas.

No Item 19 earnings disclosure leaves revenue opaque, forcing buyers to dig via existing franchisees for real-world AUVs in this $1M+ investment range. SBA data adds context: 23 loans averaging $369,443 but an 8.7% default rate suggests financing hurdles or operational variances—higher than many retail peers. For a buyer eyeing this, probe local competition from big-box clean beauty brands, validate inventory costs in your market, and scrutinize lease terms for those demo-heavy spaces to gauge if the experiential hook justifies the premium outlay.