What is the estimated cost for Grand Opening Marketing for a Beem Light Sauna?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure (1) | Low Estimate | High Estimate | Method of Payment | When Due | To Whom Payment Is Made |
|---|---|---|---|---|---|
| Grand Opening Marketing (18) | $15,000 | $15,000 | As incurred | As incurred | Third party vendors, us, and/or our affiliates |
-
- Grand Opening Marketing. 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 for your employees will not be credited towards this spending requirement. Your cost may be higher based on the length of time you wish to run opening promotions or any additional marketing spending you may choose to undertake. You must provide us with supporting documentation evidencing these expenditures upon our request. No amount paid by you for your grand opening will be credited towards the Marketing Spending Requirement. We may require you to pay to us the $15,000, which we will use to conduct grand opening advertising and promotion for your Studio in a manner that we determine in our sole discretion.
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 cost for Grand Opening Marketing is a fixed amount of $15,000. This expenditure is mandatory and must be allocated to advertising and promotion activities related to the opening of the studio. The marketing efforts must commence at least 60 days before the studio's opening and continue for 30 days after the opening. The franchisee is required to develop a grand opening plan and submit it to Beem Light Sauna for approval, and Beem Light Sauna retains the right to modify the plan.
Notably, wages and payroll-related expenses for employees cannot be counted towards the $15,000 spending requirement. The franchisee must provide supporting documentation to evidence these marketing expenditures upon request. The FDD also states that the amount paid for the grand opening will not be credited towards the general marketing spending requirement.
Beem Light Sauna has the option to require the franchisee to pay the $15,000 directly to them, which Beem Light Sauna will then use to conduct grand opening advertising and promotion for the studio. This gives Beem Light Sauna control over how the funds are spent. While the minimum is $15,000, the franchisee's actual costs may be higher if they choose to extend the promotional period or undertake additional marketing activities beyond the required minimum.