Is the Royalty Fee paid to Beem Light Sauna refundable?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) Amount of Royalty Fee. You must pay us a weekly royalty fee (the "Royalty Fee") equal to 8% of your Gross Sales (as defined in Section 3.2(b)) for the previous week. The Royalty Fee is non-refundable and is paid in consideration of the ongoing right to use
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, the Royalty Fee is non-refundable. Franchisees must pay a weekly Royalty Fee, which is 8% of the studio's Gross Sales from the previous week.
The Royalty Fee is paid for the ongoing right to use the Beem Light Sauna Marks and System, not in exchange for specific services rendered by the franchisor. Gross Sales include all revenue derived from operating the studio, whether from cash, credit, or other transactions, including proceeds from business interruption insurance related to revenue loss.
Gross Sales do not include bona fide returns and credits actually provided to customers or sales and other taxes collected from customers and paid to the appropriate taxing authority. Franchisees cannot deduct payment provider fees from their Gross Sales calculation. This non-refundable policy means that even if a franchisee experiences a downturn in sales or other financial difficulties, the royalty payments are still due and will not be reimbursed.