When is the Brand Fund Fee due for a Beem Light Sauna franchise?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee (2) | 8% of the Gross Sales of the Studio. | Currently due weekly by the 5th of each month (the "Payment Due Date") | See Note 2 for the definition of Gross Sales. |
| Brand Fund Fee | Currently, 2% of Gross Sales of the Studio. | The Payment Due Date | We have established and administer a Brand Fund. We may increase the fee up to 4% of the Gross Sales of the Studio. See Note 2 for the definition of Gross Sales. |
Source: Item 6 — OTHER FEES (FDD pages 20–26)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, the Brand Fund Fee is currently 2% of the Gross Sales of the Studio. The due date for this fee is referred to as "The Payment Due Date." Item 6 indicates that the Royalty Fee, which is currently 8% of Gross Sales, is due weekly by the 5th of each month, which is defined as the "Payment Due Date." Therefore, the Brand Fund Fee is also due weekly by the 5th of each month.
This means that as a Beem Light Sauna franchisee, you will need to calculate your Gross Sales regularly and remit 2% of that amount to the Brand Fund on a weekly basis, specifically by the 5th of each month. Gross Sales includes all revenue received from operating the studio, including cash, credit, and other forms of transactions, but excludes bona fide returns, credits, and sales taxes collected and paid to the appropriate authority.
It's important to note that Beem Light Sauna may increase the Brand Fund Fee up to 4% of Gross Sales. Franchisees should be aware of this potential increase and factor it into their financial planning. Additionally, franchisees must use the payment methods designated by Beem Light Sauna and provide necessary authorizations for payments.
Understanding the due dates and amounts of these fees is crucial for managing the financial obligations of a Beem Light Sauna franchise. Failing to remit fees on time could result in penalties or other consequences as outlined in the Franchise Agreement.