Does Beem Light Sauna have the discretion to formulate advertising or promotional programs?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
ount toward the Marketing Spending Requirement. At our request, you must submit appropriate documentation to verify compliance with the Marketing Spending Requirement. If you fail to spend (or prove that you spent) the Marketing Spending Requirement in any month, then we may, in addition to and without limiting our other rights and remedies, require you to pay us the shortfall as an additional Brand Fund Fee or to pay us the shortfall for us to spend on local marketing for your Studio.
- (d) Grand Opening Advertising. In connection with the opening of the Studio, you must spend a minimum of $15,000 for grand opening advertising and promotion beginning at least 60 days before, and ending 30 days after, the opening of your Studio in accordance with a plan that you must submit to us for our approval. We have the right to modify your grand opening plan, in our sole discretion, and may require you to use a public relations firm to assist with your grand opening. The wages and other payroll-related expenses of your employees shall not be credited towards this spending requirement. No amount paid by you for your grand opening will be credited toward the Marketing Spending Requirement. You must provide us with supporting documentation evidencing these expenditures upon request. We reserve the right, however, to require you to pay to us the $15,000 minimum grand opening spend, and we will use those funds to conduct grand opening advertising and promotion for your Studio on your behalf in a manner that we determine in our sole discretion.
- 7.4 Advertising Cooperatives. You agree to join and actively participate in any organizations or associations of franchisees or advertising cooperatives that we establish or approve for the purpose of promoting, coordinating, and purchasing advertising in local, regional, or national areas where there are multiple Studios ("Advertising Cooperatives") and to abide by the bylaws, rules, and regulations duly required by the Advertising Cooperative, which we have the right to mandate or approve. If you join an Advertising Cooperative, the Advertising Cooperative may require you to spend additional funds on marketing programs conducted by the
Advertising Cooperative, which may be in addition to your Brand Fund Fee or Marketing Spending Requirement. We shall have the right to approve any marketing materials or marketing programs developed by any Advertising Cooperative in the same manner as specified in Section 7.3(b) (Approval of Advertising Materials).
7.5 Digital Marketing.
(a) Restrictions.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna Franchise Disclosure Document, franchisees must spend a minimum of $15,000 for grand opening advertising and promotion, starting 60 days before and ending 30 days after the studio opens. Franchisees must submit a grand opening plan to Beem Light Sauna for approval, and Beem Light Sauna has the right to modify this plan at its sole discretion. Beem Light Sauna may also require franchisees to use a public relations firm for the grand opening.
Beem Light Sauna also has the option to require the franchisee to pay the $15,000 grand opening spend to Beem Light Sauna, which will then use the funds to conduct the grand opening advertising and promotion for the franchisee's studio in a manner that Beem Light Sauna determines. Wages and payroll-related expenses of the franchisee's employees cannot be credited towards the grand opening spending requirement. Franchisees must provide supporting documentation for these expenditures upon request.
Franchisees must participate in all in-studio promotional programs offered by Beem Light Sauna and follow the franchisor's guidelines for gift certificates, gift cards, coupons, corporate discounts, and other promotional programs. Franchisees cannot use gift certificates, gift cards, or coupons (including Groupons and similar discounts) unless approved or offered by Beem Light Sauna or its affiliates. Franchisees also agree to join and actively participate in any advertising cooperatives that Beem Light Sauna establishes or approves. These cooperatives may require additional spending on marketing programs, and Beem Light Sauna has the right to approve any marketing materials or programs developed by these cooperatives.