Does the FDD specify how the Brand Fund for Beem Light Sauna is used?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
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ITEM 6 OTHER FEES
OTHER FEES (Note 1)
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee (2) | 8% of the Gross Sales of the Studio. | Currently due weekly by the 5th of each month (the "Payment Due Date") | See Note 2 for the definition of Gross Sales. |
| Brand Fund Fee | Currently, 2% of Gross Sales of the Studio. | The Payment Due Date | We have established and administer a Brand Fund. We may increase the fee up to 4% of the Gross Sales of the Studio. See Note 2 for the definition of Gross Sales. |
| Technology Fee | Currently, $550 per month. The Payment | Due Date | The Technology Fee currently includes fees for various technology services that we will provide or arrange for third parties to provide, including email services, our website, our mobile application, search engine optimization services, and other software and services. We may add, delete, or otherwise modify the products and services that are included in the Technology Fee. You will begin paying the Technology Fee during your presale period, which will start three months prior to your opening date. The Technology Fee will be $450 per month during the presale period. We may increase the Technology Fee from time to time, provided that it will not exceed the greater of $1,200 per month or 2% of the Gross Sales of the S |
Source: Item 6 — OTHER FEES (FDD pages 20–26)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, a Brand Fund has been established and is administered by the franchisor. The Brand Fund fee is currently 2% of the studio's gross sales.
The FDD states that Beem Light Sauna may increase the Brand Fund fee up to 4% of the studio's gross sales. The document does not specify how the Brand Fund is used.
As the FDD does not specify how the Brand Fund is used, it would be prudent for a prospective franchisee to ask Beem Light Sauna for more details about the Brand Fund. Specifically, a prospective franchisee may want to know what percentage of the Brand Fund is used for marketing, advertising, and other promotional activities.