How is the Successor Fee calculated for a Beem Light Sauna franchise?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| expenses we expect to incur, the vendor contributions we expect to collect, and the number of franchisees we expect to attend. If you or any of your representatives do not attend any mandatory events, regardless of the reason, you must pay us, for each absent required attendee, the applicable registration fee, plus $500, unless we have previously excused in writing the absence. You are responsible for the travel and living expenses of you and your employees. | |||
| Payment Processing Fee | A reasonable monthly fee plus a reasonable per transaction charge. | Upon demand | We may require you to use us, our affiliate, or an approved or designated vendor to process all credit card transactions related to your Studio. If we require you to use us or our affiliates, we will disclose to you any required fees that you must pay, which will not exceed 115% of our and our affiliates' actual costs and expenses. |
| Product, Service, Supplier, and Service Provider Review | The greater of $1,000 or our and our affiliates' actual costs and expenses related to inspections or the testing the proposed product or evaluating the proposed service or service provider, including personnel and travel costs. | Upon demand | Payable if you wish to offer products or use any supplies, equipment, or services that we have not approved or wish to purchase from a supplier or service provider that we have not approved, whether or not we approve the item, service, supplier, or service provider. |
| Mystery Shopper Program | Currently, we do not charge you a mystery shopper program fee. | Upon demand | We may require you to participate in a mystery shopper service. If we engage the mystery shopping service on your behalf, you must pay us a fee that will not exceed 110% of our and our affiliates actual costs and expenses. Details of any program and fees will be included in the Manuals. |
| Successor Fee | 25% of the then-current franchise fee. | Upon execution of successor franchise agreement | Payable if you are qualify for, and enter into, a successor term. |
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 Successor Fee is 25% of the then-current franchise fee. This fee is payable if a franchisee qualifies for and enters into a successor term.
In practical terms, this means that if a Beem Light Sauna franchisee chooses to renew their franchise agreement for another term, they will need to pay a fee equal to 25% of the franchise fee that Beem Light Sauna is charging new franchisees at that time. For example, if the initial franchise fee is $50,000 at the time of renewal, the successor fee would be $12,500.
This fee is common in franchising and helps to compensate Beem Light Sauna for the costs associated with renewing the franchise agreement and providing continued support to the franchisee. It is important for prospective franchisees to consider this fee when evaluating the overall cost of investing in a Beem Light Sauna franchise and planning for the long-term financial implications of franchise ownership.