Who owns the copyrights relating to the Beem Light Sauna system and brand?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
RATING EXPENSES | - | | General and administrative | | | NET INCOME | $ - | | MEMBER'S EQUITY | $ - | | April 8, 2025 (inception) | | | Contribution from Member | 1,000,000 | | April 30, 2025 | $ 1,000,000 |
Sequel Brands Holdings, LLC Statement of Cash Flows
Period from April 8, 2025 (inception) through April 30, 2025
| CASH FLOWS FROM OPERATING ACTIVITIES Net Income | $ - |
|---|---|
| CASH FLOWS FROM FINANCING ACTIVITIES | 1,000,000 |
| Contribution from Member | |
| NET CHANGE IN CASH | 1,000,000 |
| CASH, beginning of period | - |
| CASH, end of period | $ 1,000,000 |
Sequel Brands Holdings, LLC Notes to Financial Statements
Note 1 – Organization and Description of Business
Sequel Brands Holdings, LLC (the Company), a Delaware limited liability company (LLC), was formed on April 8, 2025 (Inception) and is a wholly owned subsidiary of Sequel Brands, LLC (the Member). The Company was formed to facilitate the Member's growth of its wholly-owned subsidiaries that are franchisors in the fitness industry and provide a guarantee of performance to the Member's franchise entities. On April 30, 2025, the Company received an initial equity contribution consisting of $1,000,000 in cash. There were no operations of the Company prior to April 30, 2025.
In connection with the Member's growth strategy, the Member acquired the following fitness franchise entities (Franchisors
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna Franchise Disclosure Document, Beem Franchisor LLC does not directly own the intellectual property rights and operating systems of the brand. Instead, Sequel Brands Holdings, LLC owns these assets. Sequel Brands Holdings, LLC acquired Beem Franchisor LLC on January 31, 2025, making it a wholly-owned subsidiary. As a result, Sequel Brands Holdings, LLC possesses the intellectual property rights, trademarks, service marks, and operating systems associated with Beem Light Sauna.
This ownership structure has implications for prospective franchisees. While franchisees enter into an agreement with Beem Franchisor LLC, the franchisor itself is controlled by Sequel Brands Holdings, LLC, which ultimately owns the brand's intellectual property. This arrangement is not uncommon in franchising, where a parent company manages multiple franchise brands.
It is important for potential franchisees to understand the relationship between Beem Franchisor LLC and Sequel Brands Holdings, LLC. While the franchisee will be dealing directly with Beem Franchisor LLC, the parent company's financial stability and strategic decisions could impact the Beem Light Sauna franchise system. Therefore, prospective franchisees should consider the financial health and reputation of both entities when evaluating the franchise opportunity.