To whom do I pay for the Net Leasehold Improvements for a Beem Light Sauna franchise?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
aining, or consulting services at your Studio.
ITEM 7 ESTIMATED INITIAL INVESTMENT
YOUR ESTIMATED INITIAL INVESTMENT
| Type of Expenditure (1) | Low Estimate | High Estimate | Method of Payment | When Due | To Whom Payment Is Made |
|---|---|---|---|---|---|
| Franchise |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 26–31)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, the net leasehold improvements are paid to third-party vendors. These net leasehold improvements range from $228,000 to $376,700. These costs cover improvements to a standard prototype studio, encompassing items like flooring, wall treatments, ceilings, painting, electrical work, carpentry, plumbing, and HVAC systems. The payments are due as the costs are incurred.
These costs also include fees for professional services such as architects and sound consultants, in addition to required construction permits. The FDD notes that the estimate takes into account the value of any tenant improvement allowances provided by the landlord. Beem Light Sauna expects franchisees to negotiate a commercially reasonable tenant improvement allowance in their lease agreements.
The actual costs for net leasehold improvements can vary significantly based on factors such as the studio's location and size, the condition of the premises, economic factors, local costs for materials and labor, and the tenant improvement allowances obtained. The FDD notes that costs could be significantly higher in major metropolitan markets like Boston, Chicago, New York, Los Angeles, San Francisco, Seattle, and Washington, D.C., due to higher local market rates for materials and labor.