What is the definition of the 'Franchise Fee' for a Beem Light Sauna franchise?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
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No bankruptcy information is required to be disclosed in this Item.
ITEM 5 INITIAL FEES
Franchise Fee. The initial franchise fee (the "Franchise Fee") for a single Studio is $65,000 and is due upon execution of the Franchise Agreement. If we determine that you are financially and operationally qualified to develop multiple Studios, we may offer you the opportunity to enter into a Development Agreement, in which you will commit to develop a certain number of Studios that you and we consider appropriate. If you enter into a Development Agreement, the Franchise Fee will vary based on the number of Studios that you commit to develop. If you commit to develop between three and five Studios, the Franchise Fee will be $55,000 per Studio. If you commit to develop between six and nine Studios, the Franchise Fee will be $45,000 per Studio. If you commit to develop ten or more Studios, the Franchise Fee will be $35,000 per studio.
In 2024, Predecessor collected Franchise Fees, each in the amount of $59,900.
Source: Item 5 — INITIAL FEES (FDD pages 18–20)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, the initial franchise fee, referred to as the "Franchise Fee," is $65,000 for a single studio. This fee is due upon the execution of the Franchise Agreement. However, the Franchise Fee can vary if a franchisee commits to developing multiple studios through a Development Agreement.
If a prospective Beem Light Sauna franchisee commits to developing between three and five studios, the Franchise Fee is reduced to $55,000 per studio. For a commitment to develop between six and nine studios, the Franchise Fee is further reduced to $45,000 per studio. The lowest Franchise Fee is $35,000 per studio, applicable if the franchisee commits to developing ten or more studios.
In 2024, the Predecessor collected Franchise Fees, each in the amount of $59,900. It's important to note that these fees are non-refundable under any circumstances and are generally uniform for all franchisees, payable in a lump sum.