Are the fees and payments outlined in Item 7 of the Beem Light Sauna FDD refundable?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 7: ESTIMATED INITIAL INVESTMENT]
Notes:
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- Type of Expenditure. The amounts provided in this Item 7 include costs you will incur to start your business. All fees and payments are non-refundable, unless otherwise stated or permitted by the payee. The estimates provided in this Item 7 assume that you will rent the premises in which your Studio will be located from a third-party landlord. It does not include costs associated with the acquisition of real estate if you decide to operate from a building you purchase. The costs for rent, fixtures and improvements will vary and may be significantly higher than projected in this table, based on the square footage, location, economic climate, market conditions, prevailing interest rates, other financing costs, the conditions of the property, and other physical characteristics of your Studio.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 26–31)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna Franchise Disclosure Document, the fees and payments outlined in Item 7 are generally non-refundable. The FDD states that all fees and payments are non-refundable unless explicitly stated otherwise or permitted by the payee. This means that a prospective Beem Light Sauna franchisee should carefully consider all the costs associated with starting the business, as outlined in Item 7, with the understanding that these payments are typically non-refundable.
Item 7 provides an estimate of the initial investment required to start a Beem Light Sauna franchise, covering various expenditures such as the franchise fee, initial FF&E package, presale kit, initial retail inventory kit, travel and related expenses during initial training, security deposits for utilities, rent and security deposit, net leasehold improvements, construction management, signage, supplies and accessories, technology system, technology-related fees, business licenses, professional fees, insurance deposit and initial premiums, grand opening marketing, and additional funds for the first three months of operation. The amounts listed in Item 7 range from a low estimate of $392,047 to a high estimate of $666,947.
Given the non-refundable nature of most fees, it is crucial for potential Beem Light Sauna franchisees to conduct thorough due diligence and carefully review the terms and conditions of the Franchise Agreement. Understanding the specific circumstances under which a refund might be possible, as stated in the FDD, is essential. Prospective franchisees should seek clarification from Beem Light Sauna regarding any potential exceptions or conditions that may apply to the non-refundable policy.