Is the Brand Fund Fee for Beem Light Sauna used for local advertising?
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 |
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 not explicitly designated for local advertising. The document states that Beem Light Sauna has established and administers a Brand Fund, and franchisees are currently required to contribute 2% of their gross sales to this fund. The franchisor retains the right to increase this fee up to 4% of the studio's gross sales.
However, the FDD also mentions an "Ad Management Fee" of currently $850 per month, payable only if the franchisee elects to have Beem Light Sauna or its affiliate conduct required local advertising and promotion activities for their studio. This fee can be increased with prior written notice, but will not exceed $1,500 per month. Franchisees will also pay the franchisor or its affiliate the amount they intend to spend on such local marketing.
It's important to note that the Ad Management Fee does not count towards the franchisee's Marketing Spending Requirement. If a franchisee retains Beem Light Sauna's approved supplier to conduct such local marketing on their behalf, they will pay the supplier its then-current ad management fee. Therefore, while the Brand Fund Fee is for overall brand development, local advertising is handled separately through the Ad Management Fee, if the franchisee chooses that option.
Prospective franchisees should clarify with Beem Light Sauna how the Brand Fund is used and what specific advertising and marketing activities it supports. Understanding the allocation of the Brand Fund will help franchisees assess the value they receive for their contribution and plan their local marketing strategies accordingly.