Does Gross Sales for a Beem Light Sauna franchise include revenue from gift cards?

According to the 2025 Beem Light Sauna Franchise Disclosure Document, Gross Sales includes revenue from gift cards. Franchisees must pay a weekly royalty fee equal to 8% of Gross Sales. Gross Sales is defined as all revenue received from operating the studio, whether it's from cash, check, credit or debit card, gift card or gift certificate, or other credit transactions. This applies regardless of when the products or services are provided.

For a prospective Beem Light Sauna franchisee, this means that all revenue, including that from gift cards, is subject to the 8% royalty fee. This is a standard practice in franchising, where royalties are typically calculated on all revenue streams. It is important to note that the royalty fee is non-refundable.

Beem Light Sauna franchisees should be aware that the timing of revenue recognition does not impact the royalty calculation. Revenue is included in Gross Sales when it is received, not necessarily when the service is rendered. This could impact the timing of royalty payments, especially around the sale of gift cards, where revenue is received upfront but the service may be provided later.