Is Beem Light Sauna obligated to establish a Brand Fund?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
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7.1 Our Advertising Materials. We may periodically formulate, develop, produce, and conduct, at our sole discretion, advertising or promotional programs in such form and media as we determine to be most effective. We may make available to you for you to purchase approved advertising and promotional materials, including signs, posters, collaterals, etc. that we have prepared. We or our Affiliates will retain all copyrights relating to such advertising materials.
7.2 Brand Fund.
(a) Fund Management. We may, but are not obligated to, establish the Brand Fund, a segregated or independent fund into which all Brand Fund Fees will be paid. In no event 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. 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 that make a written
request for a copy.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to the 2025 FDD, Beem Light Sauna is not obligated to establish a Brand Fund. The FDD states that Beem Light Sauna may, but is not required to, establish a Brand Fund. This fund would be used for advertising, branding, marketing, and promotional activities.
The fact that Beem Light Sauna is not obligated to establish a Brand Fund gives them flexibility in how they manage marketing and advertising resources. However, it also means that franchisees cannot necessarily count on a dedicated, centrally managed fund to support brand-building activities.
If Beem Light Sauna does establish a Brand Fund, they are not required to have an independent audit completed. However, they will prepare an unaudited statement of contributions and expenditures for the Brand Fund and make it available to franchisees who request it in writing within 60 days after the close of their fiscal year. Any remaining funds at the end of the fiscal year will carry over into the next fiscal year. Beem Light Sauna or its affiliates may also make loans to the Brand Fund and charge a reasonable rate of interest, which will be repaid from future contributions.