Is the Beem Light Sauna franchise fee 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.
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- Franchise Fee. The standard Franchise Fee for opening a single unit is $65,000. See Item 5.
[Item 7: ESTIMATED INITIAL INVESTMENT]
Notes:
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- Development Fee. Upon signing the Development Agreement, you must pay us the Development Fee. The Development Fee varies based on the number of Studios you commit to develop. The low estimate is based on a commitment to develop three Studios (in which case the Franchise Fee under each Franchise Agreement would be $55,000 per studio) and the high estimate is based on a commitment to develop 10 Studios (in which case the Franchise Fee under each Franchise Agreement would be $35,000 per studio). The Development Fee will be credited towards the initial Franchise Fee for each Studio developed under the Development Agreement. The Development Fee is not refundable. See Item 5.
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, all fees and payments are non-refundable unless explicitly stated otherwise by the payee. The standard franchise fee for a single unit is $65,000, payable in a lump sum when signing the Franchise Agreement.
For franchisees entering into a Development Agreement, a Development Fee is required upon signing. The amount varies depending on the number of studios the franchisee commits to developing. For instance, developing three studios results in a franchise fee of $55,000 per studio, while committing to ten studios lowers the fee to $35,000 per studio. It is important to note that the Development Fee is not refundable but will be credited towards the initial Franchise Fee for each studio developed under the Development Agreement.
In summary, the initial franchise fee of $65,000 for a single Beem Light Sauna unit is generally non-refundable. However, for franchisees who sign a Development Agreement, the Development Fee, while also non-refundable, is credited towards the franchise fees of the individual studios developed under the agreement. Prospective franchisees should clarify any potential exceptions or specific circumstances with Beem Light Sauna directly.