What is the maximum amount a Beem Light Sauna franchisee could be charged for remedial expenses?
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, a franchisee could be charged up to 120% of the costs and expenses incurred by Beem Light Sauna and its affiliates related to correcting operational deficiencies. This fee is payable if Beem Light Sauna identifies deficiencies during a site inspection and the franchisee fails to correct them within a reasonable time, which is capped at 30 days after receiving notice from Beem Light Sauna.
This means that if a Beem Light Sauna franchisee's location is found to have operational problems during an inspection, they will be given a chance to fix them. However, if they fail to do so within the given timeframe, Beem Light Sauna can step in to correct the issues themselves and charge the franchisee for it.
The remedial expenses could include the costs of labor, materials, and any other expenses Beem Light Sauna incurs to bring the location up to standards. The 120% figure allows Beem Light Sauna to recoup not only the direct costs but also an additional 20% to cover administrative overhead or other related expenses. This could potentially be a significant expense for a franchisee if substantial corrections are needed.