What kind of pricing policies might Beem Light Sauna lawfully require a franchisee to adhere to?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
- Section 5.6)
- 4. Relocation Review. We will evaluate sites to which you propose to relocate your Studio in accordance with our then-current requirements. (Franchise Agreement - Section 4.6)
- 5. Pricing. If we determine that we may lawfully require you to charge certain prices for goods or services, certain minimum prices for goods or services, or certain maximum prices for goods or services, you must adhere to our pricing policies as set forth in the Manuals or
otherwise in writing from time to time. If we set a suggested retail price for a good or service, we may prohibit you from advertising any other prices for such goods or services.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 37–47)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, Beem Light Sauna may lawfully require franchisees to adhere to certain pricing policies. Specifically, if Beem Light Sauna determines it is lawful, they may require franchisees to charge certain prices, minimum prices, or maximum prices for goods or services. These pricing policies will be set forth in the Manuals or otherwise provided in writing.
Furthermore, if Beem Light Sauna sets a suggested retail price for a good or service, they may prohibit franchisees from advertising any other prices for those goods or services. However, franchisees are generally responsible for determining the prices they charge customers, except as otherwise provided in the Franchise Agreement regarding promotional programs and reciprocity. Beem Light Sauna also requires franchisees to provide their current price list upon request.
This means that while Beem Light Sauna retains some control over pricing, particularly in promotional contexts or where legally permissible, franchisees generally have the autonomy to set their own prices. However, franchisees must be prepared to adjust their pricing and advertising in accordance with Beem Light Sauna's directives and should be aware that Beem Light Sauna can request their current price list at any time.