What fee does Beem Light Sauna charge if they take over operation of the studio?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
If we exercise our right to manage your Studio as specified in Sections 6.2(c) (Replacement Designated Manager), 13.8 (Transfer Upon Death, Incapacity, or Bankruptcy), or 14.2(b)(viii) (Other Remedies) or agree to manage your Studio at your request, you must pay us a management fee equal to 10% of your Gross Sales, plus our direct out-of-pocket costs r
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna Franchise Disclosure Document, if Beem Light Sauna exercises its right to manage a franchisee's studio due to certain circumstances such as failure to maintain quality standards or other defaults, the franchisee must pay Beem Light Sauna a management fee. This fee is equal to 10% of the studio's Gross Sales, in addition to Beem Light Sauna's direct out-of-pocket costs.
This means that if Beem Light Sauna steps in to manage a struggling studio, the franchisee will still be responsible for covering a significant portion of the revenue generated during that period. The 10% management fee and reimbursement of out-of-pocket costs will be deducted from the studio's earnings.
This arrangement could place a further financial strain on a franchisee already facing difficulties. It is important for prospective franchisees to understand the conditions under which Beem Light Sauna might take over management and the associated costs, as this could impact their profitability and overall investment.