Is a Beem Light Sauna franchisee required to pay a transfer fee for 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.
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 is required to pay a transfer fee in the event of a control transfer. 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 that is not a control transfer, the transfer fee is $5,000.
When a franchisee provides notice of the proposed transfer, they must pay 50% of the applicable transfer fee. 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. The remaining 50% of the transfer fee is due when the transfer is finalized and closes.
In addition to the transfer fee, Beem Light Sauna requires that all accrued monetary obligations and other outstanding obligations to the company, its affiliates, and approved suppliers be up to date, fully paid, and satisfied before a control transfer can be completed. This ensures that the franchisee is in good financial standing with Beem Light Sauna before transferring ownership.
It is important for prospective Beem Light Sauna franchisees to understand these transfer requirements, as they can significantly impact the financial implications of selling their franchise in the future. Franchisees should factor in these costs when considering a transfer and ensure they are prepared to meet all financial obligations to Beem Light Sauna.