What is the maximum amount a Beem Light Sauna franchisee could be charged for the insurance procurement fee?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
of the late fee upon 60 days' prior written notice; however, it will not exceed $250 per week. |
| 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, the maximum insurance procurement fee a franchisee could be charged is up to 120% of Beem Light Sauna's and its affiliates' costs and expenses related to procuring and maintaining the required insurance. This fee is only payable if the franchisee fails to maintain the minimum insurance required by Beem Light Sauna, and Beem Light Sauna chooses to procure the required insurance on behalf of the franchisee.
This means that if a Beem Light Sauna franchisee does not maintain the required insurance coverage, Beem Light Sauna can step in to secure the necessary insurance and charge the franchisee for it. The charge will not exceed 120% of the actual costs incurred by Beem Light Sauna and its affiliates. For example, if the cost of the insurance is $1,000, the franchisee could be charged up to $1,200.
This fee covers Beem Light Sauna's costs and expenses related to obtaining and maintaining the required insurance. It is important for prospective franchisees to understand the insurance requirements outlined in the Franchise Agreement and to ensure they maintain adequate coverage to avoid incurring this fee. Franchisees should clarify with Beem Light Sauna what specific costs are included in the calculation of this fee to fully understand the potential financial implications.