Why does the Beem Light Sauna financial performance representation only cover a five-month period?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
This Item 19 presents information about the financial performance during the five-month period starting on October 1, 2024 and ending on February 28, 2025 (the "Reporting Period") of Studios that (a) had been open at least 12 months as of the start of the Reporting Period and (b) were
open throughout the entire Reporting Period ("Covered Studios"). The Reporting Period consists of only five months of data, because the data we received from Predecessor for prior periods was incomplete.
As of February 28, 2025, there were 44 Studios in operation, including 43 franchised Studios and one Studio operated by Predecessor's affiliates (which we have categorized as "Affiliate-Owned Studios"). In this Item 19, we have included data from all four Covered Studios, including two of the 43 franchised Studios and the only Affiliate-Owned Studio. 13 franchised Studios were excluded because they opened during the Reporting Period and were not open for all of the Reporting Period, and 27 franchised Studios were excluded because they had not been open 12 months as of the start of the Reporting Period. No Affiliate-Owned Studios were excluded. No Studios permanently closed during the Reporting Period.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 62–66)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, the financial performance representation in Item 19 covers a five-month period from October 1, 2024, to February 28, 2025. This limited timeframe, referred to as the "Reporting Period," is due to incomplete data received from the Predecessor for prior periods.
This means that Beem Light Sauna is providing financial data based on a relatively short window of time. This could be a concern for potential franchisees, as it may not accurately reflect the typical performance over a full year or across different seasons. The FDD includes data from four "Covered Studios" that were open for at least 12 months as of the start of the reporting period and remained open throughout the entire period. Of the 44 studios in operation as of February 28, 2025, this included two franchised Studios and one Affiliate-Owned Studio.
Prospective franchisees should be aware that the financial performance data presented may not be indicative of future results or performance in other timeframes. Beem Light Sauna encourages consulting with financial, business, and legal advisors to assess the potential financial performance of a franchise. Additionally, the FDD advises prospective franchisees to contact existing franchisees to discuss their experiences with the Beem Light Sauna system. Given the limited reporting period, speaking with current franchisees is especially important to gain a more comprehensive understanding of potential financial outcomes.
It is important to note that the financial figures presented in Item 19 of Beem Light Sauna's FDD have not been audited by a certified public accountant. While the FDD provides average, median, highest, and lowest figures for metrics like gross sales, new members, and attrition rates, these figures do not reflect the costs of sales, operating expenses, or other costs that would impact net income or profit. Therefore, potential franchisees should carefully consider all expenses and consult with financial professionals to develop realistic financial projections.