Besides promotional programs and reciprocity, who is responsible for determining the prices that Beem Light Sauna franchisees charge customers?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
otherwise in writing from time to time. If we set a suggested retail price for a good or service, we may prohibit you from advertising any other prices for such goods or services. Except as provided above and in Section 6.10(a) of the Franchise Agreement (Promotional Programs and Reciprocity), you are solely responsible for determining the prices that you charge customers. You must provide us with your current price list upon our request. (Franchise Agreement - Section 6.7)
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 37–47)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, franchisees are primarily responsible for setting their own prices. However, this is with the exception of promotional programs and reciprocity agreements, where Beem Light Sauna may set guidelines. Beem Light Sauna also retains the right to set a suggested retail price for goods and services and may prohibit franchisees from advertising other prices for those items. Franchisees must provide their current price list to Beem Light Sauna upon request.
This means that while franchisees have some autonomy in pricing, Beem Light Sauna maintains control over certain aspects to ensure brand consistency and participation in promotional activities. Franchisees need to be aware that their pricing decisions could be influenced by the franchisor's suggested prices and promotional requirements.
It is important for prospective franchisees to understand the extent of Beem Light Sauna's control over pricing and how it might affect their profitability. Franchisees should discuss with Beem Light Sauna what pricing strategies have worked for existing franchisees and how much flexibility they will truly have in setting prices in their specific market.