What does the estimate in Item 7 for Beem Light Sauna assume regarding the premises?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
you will incur to start your business. All fees and payments are non-refundable, unless otherwise stated or permitted by the payee. The estimates provided in this Item 7 assume that you will rent the premises in which your Studio will be located from a third-party landlord. It does not include costs associated with the acquisition of real estate if you decide to operate from a building you purchase. The costs for rent, fixtures and improvements will vary and may be significantly higher than projected in this table, based on the square footage, location, economic climate, market conditions, prevailing interest rates, other financing costs, the conditions of the property, and other physical characteristics of your Studio.
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- Franchise Fee. The standard Franchise Fee for opening a single unit is $65,000. See Item 5.
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- Initial FF&E Package. The Initial FF&E Package includes the equipment (saunas, red light system), 42 to 50-inch touchscreen monitor, iPads, certain furniture, fixtures, and other items such as décor, retail display, shelving, and related items necessary to furnish the Studio. The estimate includes delivery costs.
Our estimate assumes that you will purchase the Initial FF&E Package from us but will finance it through a third-party vendor via a lease-to-own or equivalent financing arrangement. The estimate assumes a standard deposit (0% at the low end, 10% at the high end), applicable
lease documentation, origination and filing fees, and scheduled payments due within the first four months of operations (including the initial payment at closing and three subsequent monthly payments).
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 estimated initial investment in Item 7 assumes that franchisees will rent the premises for their studio from a third-party landlord. The estimates do not include costs associated with acquiring real estate if a franchisee chooses to purchase a building to operate from.
The document notes that costs for rent, fixtures, and improvements can vary significantly based on factors such as square footage, location, economic climate, market conditions, prevailing interest rates, financing costs, the condition of the property, and other physical characteristics of the studio. The standard prototype studio is expected to be a one-story space between 1,300 to 1,800 square feet.
Furthermore, the estimates in Item 7 include three months of base rent and one month's rent for the security deposit. The FDD also mentions the possibility of additional charges such as common area maintenance, pro rata shares of real estate taxes and insurance, and pro rata shares of HVAC and trash removal, which are included in the estimates provided. Beem Light Sauna may consider variances to the standard prototype studio size on a case-by-case basis at the franchisee's request.