When must a Beem Light Sauna franchisee pay the Transfer Fee, and in what installments?
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 the
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna FDD, the timing and amount of the transfer fee depend on the type of transfer. If a Control Transfer occurs, which is defined in Section 13.2, the transfer fee is equal to 25% of the then-current franchise fee for a new Beem Light Sauna studio. For any other type of transfer, the transfer fee is $5,000.
Regardless of the transfer type, the payment schedule is the same. The Beem Light Sauna franchisee must pay 50% of the Transfer Fee when they provide notice of the proposed transfer to Beem Light Sauna. This initial payment will be refunded if the transfer does not close, although Beem Light Sauna will deduct their actual costs and expenses incurred related to the proposed transfer from the refund. The remaining 50% of the Transfer Fee must be paid when the transfer officially closes.
This payment structure means a Beem Light Sauna franchisee needs to have the funds available upfront to cover half the transfer fee when initiating the transfer process. They also face the risk of losing a portion of that initial payment to cover Beem Light Sauna's expenses even if the transfer falls through. This is a fairly standard practice in franchising, as it protects the franchisor from incurring costs for transfers that are never completed.