What are considered 'Operating Assets' for a Beem Light Sauna franchise?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to require that all furniture, fixtures, signs, and equipment (collectively, the "Operating Assets") and products, supplies, and services that you purchase for resale or purchase or lease for use in your Studio: (i) meet specifications that we establish from time to time; (ii) be a specific brand, kind, or model; (iii) be purchased or leased only from suppliers or service providers that we have expressly approved; and/or (iv) be purchased or leased only from a single source that we designate (which may include us or our affiliates or a buying cooperative organized by us or our affiliates).
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 31–36)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, Operating Assets are defined as all furniture, fixtures, signs, and equipment that a franchisee purchases or leases for use in their studio. Beem Light Sauna retains the right to require that these Operating Assets meet specific standards, be of a particular brand, kind, or model, and be acquired only from approved suppliers or a designated single source, which may include Beem Light Sauna itself or its affiliates.
This definition is important for prospective franchisees because it highlights the control Beem Light Sauna exerts over the look and functionality of each franchise location. Franchisees must adhere to the franchisor's specifications when acquiring these assets, limiting their choice of suppliers and potentially impacting costs. The FDD also states that the cost to purchase and lease all equipment, inventory and other items and services that Beem Light Sauna requires you to obtain from them or their affiliates, from designated suppliers, or in accordance with their specifications ranges from 80% to 95% of the total cost to purchase and lease equipment, inventory, and other items necessary to establish a Studio and 15% to 25% of the total cost to purchase and lease equipment, inventory, and other items to operate a Studio.
Furthermore, franchisees need to seek approval from Beem Light Sauna for any products, supplies, Operating Assets, or services not already approved, incurring a charge of $1,000 or the franchisor's actual costs for inspection and testing. Beem Light Sauna also reserves the right to re-inspect and revoke approval of previously approved items, potentially requiring franchisees to discontinue using or selling those items. These restrictions ensure uniformity across all Beem Light Sauna locations but also reduce the franchisee's autonomy in sourcing and selecting essential business assets.