Is Beem Light Sauna required to have an independent audit of the Brand Fund completed?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
Brand Fund. We have established and administer a Brand Fund to which you must contribute up to 4% (currently, 2%) of Gross Sales. Under no circumstances 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, but, if we elect to do so, we may use Brand Fund monies to pay for the audit. 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 who make a written request 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.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 37–47)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, Beem Light Sauna is not required to have an independent audit of its Brand Fund. However, if Beem Light Sauna elects to have an audit, it may use the Brand Fund monies to cover the costs.
Beem Light Sauna will prepare an unaudited statement of contributions and expenditures for the Brand Fund. This statement will be available to franchisees within 60 days after the close of Beem Light Sauna's fiscal year, but only to those franchisees who make a written request for it.
Any remaining funds in the Brand Fund at the end of the fiscal year will be carried over into the next fiscal year. Beem Light Sauna or its affiliates may provide loans to the Brand Fund if the balance is negative, charging a reasonable rate of interest. These loans will be repaid from future contributions to the Brand Fund.