What is the maximum amount a Beem Light Sauna franchisee could be charged for an inspection fee?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Inspection | Up to 120% of our and our affiliates' costs in inspecting your business, including travel and living expenses and wages for our representatives. | Upon demand | Payable if inspection is necessitated by your repeated or continuing failure to comply with any provision of the Franchise Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 20–26)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, an inspection fee may be charged to a franchisee if an inspection is required due to repeated or ongoing failure to comply with the Franchise Agreement. The maximum amount for this inspection fee is up to 120% of Beem Light Sauna's and its affiliates' costs. This includes the costs of travel and living expenses, as well as wages for their representatives during the inspection.
This fee is payable upon demand, meaning Beem Light Sauna can request immediate payment. It is important to note that this fee is not a standard charge but is only imposed if the franchisee is in violation of the Franchise Agreement and has necessitated the inspection through their non-compliance.
For a prospective Beem Light Sauna franchisee, this highlights the importance of adhering to the Franchise Agreement to avoid incurring such fees. Franchisees should ensure they understand and comply with all provisions to prevent triggering an inspection that could result in a fee equivalent to 120% of the franchisor's costs. This could potentially amount to a significant and unexpected expense.