How is the Brand Fund Fee for a Beem Light Sauna franchise calculated?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
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ITEM 6 OTHER FEES
OTHER FEES (Note 1)
| 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. |
| Technology Fee | Currently, $550 per month. The Payment | Due Date | The Technology Fee currently includes fees for various technology services that we will provide or arrange for third parties to provide, including email services, our website, our mobile application, search engine optimization services, and other software and services. We may add, delete, or otherwise modify the products and services that are included in the Technology Fee. You will begin paying the Technology Fee during your presale period, which will start three months prior to your opening date. The Technology Fee will be $450 per month during the presale period. We may increase the Technology Fee from time to time, provided that it will not exceed the greater of $1,200 per month or 2% of the Gross Sales of the Studio. The Technology Fee is in addition to any technology-related fees that you may be required to pay directly to vendors. |
| Ad Management Fee | Currently, $850 per month. | The Payment Due Date | Payable only if you elect to have us or our Affiliate conduct, on your behalf, required local advertising and promotion activities for your Studio. The fee may be increased upon prior written notice to you, but will not exceed $1,500 per month. You will also pay us or our affiliate the amount that you intend to spend on such local marketing. Ad management fees will not count towards your Marketing Spending Requirement. |
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. This fee is due on the same date as the Royalty Fee, which is currently weekly by the 5th of each month.
The Brand Fund is administered by Beem Light Sauna. The FDD specifies that Beem Light Sauna retains the right to increase this fee up to a maximum of 4% of the Gross Sales of the Studio.
Gross Sales are defined as all revenue received from operating the Studio, including cash, credit, debit cards, gift cards, and other credit transactions, regardless of when the products or services are provided or when payment is collected. Gross Sales also include proceeds from business interruption insurance related to revenue loss and promotional allowances or rebates. Exclusions from Gross Sales include bona fide returns and credits provided to customers and sales or other taxes collected and remitted to taxing authorities. Payment provider fees cannot be deducted from Gross Sales when calculating the Brand Fund Fee.