Are the fees described in Item 5 of the Beem Light Sauna FDD refundable under any circumstances?

According to the 2025 Beem Light Sauna Franchise Disclosure Document, the fees outlined in Item 5 are generally non-refundable. Specifically, the document states that all fees listed in Item 5 are not refundable under any circumstances. This includes fees such as the Franchise Fee, Development Fee, Initial FF&E Package costs (if purchased outright), Presale Kit Payment, Initial Retail Inventory Kit Payment, Grand Opening Marketing expenses, Initial Training Fees, and Opening Deadline Extension Fee.

This non-refundable policy means that a prospective Beem Light Sauna franchisee should carefully consider their decision before paying any of these fees. For example, the initial franchise fee for a single studio is $65,000, and the Grand Opening Marketing requires a minimum spend of $15,000. Once paid, these amounts are non-refundable, regardless of whether the franchisee ultimately opens a Beem Light Sauna studio. This is a standard practice in franchising, as these fees often cover the franchisor's costs for providing support, training, and resources to the franchisee.

The non-refundable nature of the Initial FF&E Package is particularly noteworthy. If a franchisee chooses to purchase the Initial FF&E Package outright, the cost ranges from $148,500 to $195,500, and this payment is nonrefundable. However, if the franchisee finances the Initial FF&E Package through a third-party vendor, the pre-opening payments will range from $11,900 to $22,700. While the FDD does not explicitly state whether these financed payments are refundable, the general statement about Item 5 fees suggests they are not. Franchisees should clarify the refundability of financed payments with Beem Light Sauna.

Given the significant investment required and the non-refundable nature of these fees, prospective Beem Light Sauna franchisees should conduct thorough due diligence, carefully review the Franchise Agreement, and seek professional financial and legal advice before committing to the franchise. Understanding the terms and conditions related to these fees is crucial for making an informed decision.