Is Beem Light Sauna a supplier with whom franchisees are required to do business?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
of any Sessions that you offer, you must immediately discontinue offering the Session or modify the Session in accordance with our instructions.
Currently, we require you to purchase from us or our affiliates (i) the Initial FF&E Package, (ii) the Presale Kit, (iii) the Initial Retail Inventory Kit, (iv) ongoing retail and merchandise inventory, (v) branded items, (vi) apparel, and (vii) and promotional items. We reserve the right to designate us or our affiliates as approved or required suppliers of other goods or services in the future.
Currently, we require you to purchase from suppliers or service providers that we have designated or approved (i) certain other equipment and supplies, (ii) interior graphics and exterior signage, (iii) the Technology System, (iv) digital marketing, (v) flooring, and (vi) payment processing services. We may require you to purchase other goods or services from approved or designated supplies or services providers in the future.
When you develop and construct your Studio, we have the right to require you to obtain our prior written approval of any project managers, architects, engineers, or designers that you would like to use before you engage them.
One of Sequel Brands' officers owns an interest in us and our affiliates, and we are a supplier with whom you are required to do business. None of our or Sequel Brands' officers own an interest in other, unaffiliated suppliers with whom you are required or recommended to do business.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 31–36)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, franchisees are required to do business with Beem Light Sauna as a supplier. The FDD specifies that one of Sequel Brands' officers owns an interest in Beem Light Sauna and its affiliates, making Beem Light Sauna a required supplier.
Specifically, franchisees must purchase certain items directly from Beem Light Sauna or its affiliates. These mandatory purchases include the Initial FF&E Package, the Presale Kit, the Initial Retail Inventory Kit, ongoing retail and merchandise inventory, branded items, apparel, and promotional items. Beem Light Sauna retains the right to designate itself or its affiliates as the approved or required suppliers for additional goods or services in the future, giving them control over a significant portion of the franchisee's supply chain.
Furthermore, Beem Light Sauna estimates that the cost to purchase or lease all equipment, inventory, and other items and services that franchisees are required to obtain from them, their affiliates, or designated suppliers, or according to their specifications, ranges from 80% to 95% of the total cost to establish a Studio. For the ongoing operation of the studio, these required purchases account for 15% to 25% of the total cost to purchase and lease equipment, inventory, and other items. This indicates a substantial financial dependency on approved or mandated suppliers, including Beem Light Sauna itself, for both the initial setup and continued operation of the franchise.