Are the royalty fees for Beem Light Sauna due weekly or monthly?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
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ITEM 6 OTHER FEES
OTHER FEES (Note 1)
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee (2) | 8% of the Gross Sales of the Studio. | Currently due weekly by the 5th of each month (the "Payment Due Date") | See Note 2 for the definition of Gross Sales. |
| Brand Fund Fee | Currently, 2% of Gross Sales of the Studio. | The Payment Due Date | We have established and administer a Brand Fund. We may increase the fee up to 4% of the Gross Sales of the Studio. See Note 2 for the definition of Gross Sales. |
| Technology Fee | Currently, $550 per month. The Payment | Due Date | The Technology Fee currently includes fees for various technology services that we will provide or arrange for third parties to provide, including email services, our website, our mobile application, search engine optimization services, and other software and services. We may add, delete, or otherwise modify the products and services that are included in the Technology Fee. You will begin paying the Technology Fee during your presale period, which will start three months prior to your opening date. The Technology Fee will be $450 per month during the presale period. We may increase the Technology Fee from time to time, provided that it will not exceed the greater of $1,200 per month or 2% of the Gross Sales of the Studio. The Technology Fee is in addition to any technology-related fees that you may be required to pay directly to vendors. |
| Ad Management Fee | Currently, $850 per month. | The Payment Due Date | Payable only if you elect to have us or our Affiliate conduct, on your behalf, required local advertising and promotion activities for your Studio. The fee may be increased upon prior written notice to you, but will not exceed $1,500 per month. You will also pay us or our affiliate the amount that you intend to spend on such local marketing. Ad management fees will not count towards your M |
Source: Item 6 — OTHER FEES (FDD pages 20–26)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, the royalty fees are currently due weekly. Specifically, the royalty fee is 8% of the Gross Sales of the Studio. However, the payments are made by the 5th of each month, which is referred to as the "Payment Due Date".
In addition to the royalty fee, Beem Light Sauna franchisees also pay a Brand Fund Fee, which is currently 2% of Gross Sales, and a Technology Fee, which is currently $550 per month. The Brand Fund Fee is also due by the 5th of each month. The Technology Fee is due on the Payment Due Date as well. There is also an Ad Management Fee of $850 per month, which is only payable if the franchisee elects to have Beem Light Sauna or its affiliate conduct local advertising and promotion activities.
It's important to note that Beem Light Sauna may increase the Brand Fund Fee up to 4% of Gross Sales and the Technology Fee up to the greater of $1,200 per month or 2% of Gross Sales. The Ad Management Fee may also be increased with prior written notice, but will not exceed $1,500 per month. Franchisees should be aware of these potential increases when budgeting for their ongoing expenses.