What is the purpose of the Brand Fund Fee for Beem Light Sauna franchisees?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
quest for a copy. If any monies in the Brand Fund remain at the end of a fiscal year, they will carry-over in the Brand Fund into the next fiscal year. We or one of our Affiliates may make or otherwise arrange loans to the Brand Fund in any year in which the balance of the Brand Fund is negative and charge a reasonable rate of interest. The amounts loaned to the Brand Fund will be repaid from future contributions to the Brand Fund in the year the loan is made or in subsequent years.
- (b) Use of Brand Fund. We may use monies in the Brand Fund and any earnings on the Brand Fund account for any costs associated with advertising (media and production), branding, marketing, public relations and/or promotional programs and materials, and any other activities we determine, in our sole discretion, would benefit the Brand or the Studios generally, including (i) advertising campaigns in various media; (ii) creation, maintenance, and optimization of the System Website or other websites; (iii) keyword or adword purchasing programs; (iv) conducting and managing social media activities; (v) direct mail advertising; (vi) market research, including secret shoppers and customer satisfaction surveys; (vii) branding studies; (viii) engaging advertising and/or public relations agencies and paying any related retainers and fees; (ix) employing marketing and brand-building personnel and paying the salaries and benefits of such personnel and our marketing department overhead; (x) purchasing and designing promotional items; (xi) conducting and administering promotions, contests, giveaways, public relations events, and community involvement activities; (xii) marketing the sale of franchises; and (xiii) providing promotional and other marketing materials and services to our franchisees. We may also use contributions to the Brand Fund for reasonable administrative costs and overhead we incur in the administration of the Brand Fund and the implementation of Brand Fund-supported programs. We may use monies in the Brand Fund to pay for an independent audit of the Brand Fund, if we elect to have it audited. We do not guarantee that you will benefit from the Brand Fund in proportion to your contributions to the Brand Fund.
- (c) Control Over Brand Fund. We may consult with, in our sole discretion, a franchisee advisory council selected by franchisees or a committee of franchisees that we appoint regarding marketing programs. However, we have the right to direct all marketing programs and uses of the Brand Fund, with the final decision over creative concepts, materials, and media used in the programs and their placement.
- (d) Materials Produced. Any sales and other materials produced with Brand Fund monies will be made available to you without charge or at a reasonable cost.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, the Brand Fund is used for costs associated with advertising, branding, marketing, public relations, and promotional programs. These activities are intended to benefit the Beem Light Sauna brand or the studios generally.
Specifically, the Brand Fund may cover advertising campaigns, website creation and maintenance, keyword purchasing programs, social media activities, direct mail advertising, market research, branding studies, and the engagement of advertising or public relations agencies. It can also be used for employing marketing personnel, purchasing promotional items, conducting promotions and contests, and providing marketing materials to franchisees. Beem Light Sauna may also use the Brand Fund for reasonable administrative costs and overhead incurred in administering the fund and implementing supported programs.
Beem Light Sauna retains control over the Brand Fund and directs all marketing programs, including final decisions on creative concepts and media placement. While the franchisor may consult with a franchisee advisory council or committee, the ultimate decision-making authority rests with Beem Light Sauna. Franchisees are not guaranteed to benefit from the Brand Fund in proportion to their contributions. Any sales materials produced with Brand Fund monies will be made available to franchisees at no charge or at a reasonable cost, with the proceeds from such sales also deposited back into the Brand Fund.
If Beem Light Sauna or its affiliates operate any studios, they will contribute to the Brand Fund on the same basis as required for franchisees. This ensures that company-owned studios also support the marketing and branding efforts funded by the Brand Fund. The franchisor may elect to have an independent audit of the Brand Fund, using monies from the fund to pay for the audit.