What fees must be paid to Beem Light Sauna in the event of a control transfer?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
ional fee. You acknowledge that we have no obligation to refund the Initial Retail Inventory Kit Payment, in whole or in part, for any reason.
- 3.8 Successor Fee. Upon your execution of a successor franchise agreement pursuant to Section 2.2 (Successor Term), you will pay to us, instead of the franchise fee under such successor franchise agreement, a successor fee equal to 25% of such franchise fee (the "Successor Fee").
- 3.9 Transfer Fee. If a Control Transfer (as defined in Section 13.2 (Definition of Transfer)) occurs, you must pay us a transfer fee equal to 25% of the then-current franchise fee for a new Studio (the "Transfer Fee"). For any other Transfer, the Transfer Fee shall be equal to $5,000. You must pay us 50% of the Transfer Fee when you provide us with notice of the proposed Transfer (which will be refunded if the Transfer does not close, less our actual costs and expenses incurred related to the proposed Transfer), and you must pay us the remaining 50% of the Transfer Fee when the Transfer closes.
- 3.10 Relocation Fee. If you relocate your Studio from the Site to a new location, you will pay to us a relocation fee equal to $5,000 (the "Relocation Fee").
- 3.11 Training Fee.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, a franchisee must pay a transfer fee in the event of a control transfer. This transfer fee is equal to 25% of the then-current franchise fee for a new Beem Light Sauna studio. The FDD states that 50% of this transfer fee must be paid when the franchisee provides notice of the proposed transfer. This initial payment is refundable if the transfer does not occur, although Beem Light Sauna may deduct its actual costs and expenses related to the proposed transfer from the refund. The remaining 50% of the transfer fee is due when the transfer is completed and closed.
In addition to the transfer fee, the franchisee must ensure that all monetary and other outstanding obligations to Beem Light Sauna, its affiliates, and approved suppliers are fully paid and satisfied before the control transfer can proceed. This condition ensures that the franchisee is in good financial standing with the franchisor and its related entities before ownership changes.
It is important to note that Beem Light Sauna retains sole and absolute discretion to withhold consent for a transfer, except as otherwise provided in specific sections of the franchise agreement related to transfers to an entity, permitted transfers, and transfers upon death, incapacity, or bankruptcy. The franchisor may also impose additional conditions for granting consent to the transfer. The consent to transfer agreement must be executed by the franchisee, their owners, and the transferee and its owners, outlining the conditions for obtaining consent to the transfer.