Is the Beem Light Sauna Development Fee credited towards the Franchise Fee?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
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In 2024, Predecessor collected Franchise Fees, each in the amount of $59,900.
Development Fee. If you enter into a Development Agreement, you must pay us, upon signing the Development Agreement, a development fee equal to 100% of the aggregate of all of the Franchise Fees due for each Studio that you agree to develop (the "Development Fee"). The Development Fee will range between $165,000 to $350,000 if you commit to develop between three to 10 Studios. The Development Fee will be credited towards the Franchise Fee due for each Studio developed under the Development Agreement, and there will be no additional
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 Development Fee is credited towards the Franchise Fee. If a prospective franchisee enters into a Development Agreement, they must pay a Development Fee upon signing, which is equal to 100% of the total Franchise Fees for each studio they commit to develop. This fee can range from $165,000 to $350,000 if the franchisee commits to developing between three and ten studios.
The FDD specifies that the Development Fee will be credited towards the Franchise Fee due for each studio developed under the Development Agreement. This means that franchisees will not have to pay an additional Franchise Fee for each studio as they open them, as it is already covered by the initial Development Fee.
This arrangement is beneficial for multi-unit developers as it streamlines the payment process. Instead of paying individual Franchise Fees for each location, the franchisee makes one lump-sum payment upfront, which is then applied to each studio as it is developed. This can simplify budgeting and financial planning for franchisees looking to expand rapidly with Beem Light Sauna.