Can Beem Light Sauna change the due date for the royalty and brand fund fees?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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. |
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 royalty fee is 8% of the studio's gross sales and the brand fund fee is currently 2% of gross sales. Both the royalty fee and the brand fund fee are due weekly by the 5th of each month, which is referred to as the "Payment Due Date."
The FDD does not explicitly state whether Beem Light Sauna can unilaterally change the "Payment Due Date" for the royalty and brand fund fees. However, under the "Non Compliance Fee" terms, Beem Light Sauna may modify the fees upon written notice. It is important to note that the brand fund fee may increase up to 4% of the gross sales of the studio.
While the FDD specifies the current due date and the potential for the brand fund fee to increase, it lacks explicit information on Beem Light Sauna's ability to alter the payment due date. A prospective franchisee should seek clarification from Beem Light Sauna regarding the conditions under which the payment due date for royalty and brand fund fees could be changed. Understanding the potential for changes to the payment due date is crucial for managing cash flow and financial planning as a Beem Light Sauna franchisee.