Can the Brand Fund Fee for a Beem Light Sauna franchise be increased?
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 S |
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 can be increased. Currently, the Brand Fund Fee is 2% of Gross Sales of the Studio, payable weekly by the 5th of each month. Beem Light Sauna has the right to increase this fee up to 4% of the Gross Sales.
The Brand Fund is administered by Beem Light Sauna. This fund is typically used for marketing and advertising activities to promote the brand. An increase in the Brand Fund Fee would mean franchisees contribute a higher percentage of their gross sales towards these marketing efforts.
For a prospective franchisee, this means that while the initial Brand Fund Fee is set at 2%, they should be prepared for a potential increase up to 4% of their Gross Sales. This increase would directly impact their operating costs and profitability. It is important to factor in this potential change when projecting financial performance and assessing the overall viability of the Beem Light Sauna franchise.