Is the Brand Fund Fee for Beem Light Sauna used for regional 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 M |
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 used for advertising, but the document does not specify whether it is used for regional advertising. The Brand Fund Fee is currently 2% of Gross Sales, and Beem Light Sauna may increase it up to 4% of Gross Sales.
In addition to the Brand Fund Fee, Beem Light Sauna franchisees may also incur an Ad Management Fee. This fee is currently $850 per month and is payable only if the franchisee elects to have Beem Light Sauna or its affiliate conduct local advertising and promotion activities on their behalf. This fee may be increased with prior written notice, but it will not exceed $1,500 per month. Franchisees will also pay Beem Light Sauna or its affiliate the amount they intend to spend on such local marketing.
Because the FDD does not specify whether the Brand Fund Fee is used for regional advertising, prospective franchisees should inquire with Beem Light Sauna about how the Brand Fund is used and what portion of it is allocated to regional advertising efforts.