In New York, how does Beem Light Sauna use the initial franchise fee?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
The initial franchise fee constitutes part of our general operating funds and will be used as such in our discretion.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, the initial franchise fee contributes to the company's general operating funds. Beem Light Sauna has the discretion to use these funds as they see fit.
For a prospective franchisee, this means the initial franchise fee you pay is not earmarked for any specific purpose, such as training or site selection. Instead, it goes into the general pool of funds that Beem Light Sauna uses to run its operations. This is a fairly standard practice in franchising, as the initial fee is often used to cover the franchisor's costs of granting the franchise and providing initial support.
While the FDD specifies that New York franchisees have certain rights under Article 33 of the General Business Law, it does not restrict how Beem Light Sauna uses the initial franchise fee. Therefore, franchisees in New York should be aware that the fee is non-refundable and will be used at the discretion of Beem Light Sauna.