From what source will amounts loaned to the Beem Light Sauna Brand Fund be repaid?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
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 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, if the Brand Fund has a negative balance, Beem Light Sauna or one of its affiliates may loan money to the fund and charge a reasonable interest rate. These loans to the Brand Fund will be repaid from future contributions to the Brand Fund, either in the year the loan was made or in subsequent years.
This means that a portion of the franchisee's future contributions to the Brand Fund will be used to repay any loans made to the fund, along with interest. The Brand Fund is used for advertising, marketing, and promotional activities to benefit the Beem Light Sauna brand and its studios.
Franchisees should be aware that the franchisor is not obligated to establish a Brand Fund, but if one is established, the franchisor has the discretion to borrow money for the fund and determine the repayment schedule from future franchisee contributions. This arrangement ensures the Brand Fund can continue to operate even if it temporarily runs a deficit, but it also means that a portion of franchisee contributions will go towards repaying these loans.