What is the 'Transfer Fee' in the context of a Beem Light Sauna Control Transfer?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
ional fee. You acknowledge that we have no obligation to refund the Initial Retail Inventory Kit Payment, in whole or in part, for any reason.
- 3.8 Successor Fee. Upon your execution of a successor franchise agreement pursuant to Section 2.2 (Successor Term), you will pay to us, instead of the franchise fee under such successor franchise agreement, a successor fee equal to 25% of such franchise fee (the "Successor Fee").
- 3.9 Transfer Fee. If a Control Transfer (as defined in Section 13.2 (Definition of Transfer)) occurs, you must pay us a transfer fee equal to 25% of the the
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, a 'Transfer Fee' is required when a Control Transfer occurs. A Control Transfer necessitates a payment to Beem Light Sauna equal to 25% of the then-current franchise fee for a new studio. For transfers that do not qualify as Control Transfers, the transfer fee is $5,000.
The FDD specifies payment terms for the Transfer Fee. The franchisee must pay 50% of the Transfer Fee upon providing notice of the proposed transfer. This initial payment is refundable if the transfer does not proceed, although Beem Light Sauna may deduct its actual costs and expenses related to the proposed transfer. The remaining 50% of the Transfer Fee is due when the transfer is finalized and closed.
This fee structure has significant implications for Beem Light Sauna franchisees considering selling or transferring their business. The Control Transfer fee, calculated as a percentage of the current franchise fee, could be substantial, especially if the franchise fee has increased since the franchisee originally purchased the franchise. Franchisees should factor this cost into their decision-making process when planning a transfer. The non-refundable portion of the initial payment also means that franchisees could incur expenses even if the transfer does not ultimately go through.