How often does Beem Light Sauna collect the royalty fee?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee (2) | 8% of the Gross Sales of the Studio. | Currently due weekly by the 5th of each month (the "Payment Due Date") | See Note 2 for the definition of Gross Sales. |
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 royalty fee, which is 8% of the Studio's Gross Sales, is currently due weekly. Specifically, it must be paid by the 5th of each month.
This weekly payment schedule means that franchisees need to maintain diligent accounting practices to accurately calculate and remit the royalty fee on time. Gross Sales are defined as all revenue received from operating the studio, including cash, credit, and other forms of transactions, but excluding returns, credits, and sales taxes.
Franchisees should be aware of this weekly obligation and factor it into their cash flow management. Missing the payment due date could result in penalties or other consequences as outlined in the Franchise Agreement. It is important to note that the franchisor can modify the payment methods and may require franchisees to furnish necessary authorizations for payments.