To whom does Beem Light Sauna make the Brand Fund statement available?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
Brand Fund. We have established and administer a Brand Fund to which you must contribute up to 4% (currently, 2%) of Gross Sales. Under no circumstances will we be deemed a fiduciary with respect to any Brand Fund Fees we receive or administer. We are not required to have an independent audit of the Brand Fund completed, but, if we elect to do so, we may use Brand Fund monies to pay for the audit. We will prepare an unaudited statement of contributions and expenditures for the Brand Fund and make it available within 60 days after the close of our fiscal year to franchisees who make a written request for a copy. If any monies in the Brand Fund remain at the end of a fiscal year, they will carry-over in the Brand Fund into the next fiscal year. We or one of our affiliates may make or otherwise arrange loans to the Brand Fund in any year in which the balance of the Brand Fund is negative and charge a reasonable rate of interest. The amounts loaned to the Brand Fund will be repaid from future contributions to the Brand Fund in the year the loan is made or in subsequent years.
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, the franchisor will prepare an unaudited statement of contributions and expenditures for the Brand Fund. This statement will be made available to franchisees who submit a written request for a copy. The statement will be available within 60 days after the close of Beem Light Sauna's fiscal year.
This means that franchisees who want to review the financial activity of the Brand Fund must proactively request this information in writing. The statement provided is unaudited, so it has not been verified by an independent accounting firm.
It is common in franchising for franchisors to maintain a brand fund for marketing and advertising purposes. Franchisees typically contribute a percentage of their gross sales to this fund. The franchisor then uses the fund to promote the brand and support the franchise system. Franchisees have a vested interest in understanding how these funds are being managed and spent, so the ability to request a statement of contributions and expenditures provides a degree of transparency.