What is the Brand Fund Fee used for regarding the Beem Light Sauna brand or studios?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.3 Brand Fund Fee.
You must contribute weekly an amount that we specify from time to time in our sole discretion, which will not exceed 4% of your Gross Sales (the "Brand Fund Fee") to a fund dedicated to activities we believe would benefit the Brand or the Studios generally (the "Brand Fund").
- 3.4 Technology Fee.
Beginning three months prior to the opening of your Studio, you must pay to us, or a third party that we designate, a technology fee for various technology services that we will provide or arrange for third parties to provide, which services are subject to change over time (a "Technology Fee").
We may use monies in the Brand Fund and any earnings on the Brand Fund account for any costs associated with advertising (media and production), branding, marketing, public relations and/or promotional programs and materials, and any other activities we determine, in our sole discretion, would benefit the Brand or the Studios generally, including (i) advertising campaigns in various media; (ii) creation, maintenance, and optimization of the System Website or other websites; (iii) keyword or adword purchasing programs; (iv) conducting and managing social media activities; (v) direct mail advertising; (vi) market research, including secret shoppers and customer satisfaction surveys; (vii) branding studies; (viii) engaging advertising and/or public relations agencies and paying any related retainers and fees; (ix) employing marketing and brand-building personnel and paying the salaries and benefits of such personnel and our marketing department overhead; (x) purchasing and designing promotional items; (xi) conducting and administering promotions, contests, giveaways, public relations events, and community involvement activities; (xii) marketing the sale of franchises; and (xiii) providing promotional and other marketing materials and services to our franchisees.
We may also use contributions to the Brand Fund for reasonable administrative costs and overhead we incur in the administration of the Brand Fund and the implementation of Brand Fund-supported programs.
We do not guarantee that you will benefit from the Brand Fund in proportion to your contributions to the Brand Fund.
However, we have the right to direct all marketing programs and uses of the Brand Fund, with the final decision over creative concepts, materials, and media used in the programs and their placement.
Any sales and other materials produced with Brand Fund monies will be made available to you without charge or at a reasonable cost.
The proceeds of such sales will also be deposited into the Brand Fund.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna Franchise Disclosure Document, the Brand Fund Fee is used for activities that the franchisor believes would generally benefit the Beem Light Sauna brand or its studios. The franchisee must contribute weekly an amount specified by the franchisor, but it will not exceed 4% of the franchisee's gross sales.
The Brand Fund may be used for costs associated with advertising, branding, marketing, public relations, and promotional programs and materials. These activities include advertising campaigns, website creation and maintenance, keyword purchasing programs, social media management, direct mail advertising, market research, branding studies, engaging advertising and public relations agencies, employing marketing personnel, purchasing promotional items, and conducting promotions and public relations events. The Brand Fund can also cover the reasonable administrative costs and overhead incurred by Beem Light Sauna in administering the fund and implementing supported programs.
Beem Light Sauna does not guarantee that franchisees will benefit from the Brand Fund in proportion to their contributions. The franchisor has the right to direct all marketing programs and uses of the Brand Fund, with the final decision over creative concepts, materials, and media used in the programs and their placement. The franchisor may consult with a franchisee advisory council or a committee of franchisees regarding marketing programs, but the final decision remains with Beem Light Sauna. Any sales and other materials produced with Brand Fund monies will be made available to franchisees without charge or at a reasonable cost, and the proceeds of such sales will also be deposited into the Brand Fund.