When is the Beem Light Sauna development fee due?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
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YOUR ESTIMATED INITIAL INVESTMENT
(MULTIPLE STUDIOS DEVELOPED UNDER DEVELOPMENT AGREEMENT)
| Type of Expenditure | Low Estimate | High Estimate | Method of Payment | When Due | To Whom Payment Is Made |
|---|---|---|---|---|---|
| Development Fee (1) | $165,000 | $350,000 | Lump sum | When you sign Development Agreement | Us |
| Estimated Initial Investment for First Studio (2) | $327,047 | $601,947 | As incurred | As incurred | Us and third parties |
| TOTAL (3) | $492,047 | $951,947 |
Notes:
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- Development Fee. Upon signing the Development Agreement, you must pay us the Development Fee. The Development Fee varies based on the number of Studios you commit to develop.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 26–31)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, the development fee is due when you sign the Development Agreement. The development fee ranges from $165,000 to $350,000 and must be paid to Beem Light Sauna as a lump sum.
The amount of the development fee varies depending on the number of Beem Light Sauna studios the franchisee commits to develop. The low estimate of $165,000 is based on a commitment to develop three studios, in which case the franchise fee under each Franchise Agreement would be $55,000 per studio. The high estimate of $350,000 is based on a commitment to develop 10 studios, in which case the franchise fee under each Franchise Agreement would be $35,000 per studio.
The Development Fee will be credited towards the initial Franchise Fee for each studio developed under the Development Agreement and is non-refundable. For each studio that you develop under a Development Agreement, you will execute a Franchise Agreement and incur the initial investment expenses for the development of a single studio as described in the FDD. The estimate does not include the Franchise Fee, since the Development Fee is credited towards the Franchise Fee for each Studio.