When is the Beem Light Sauna transfer fee due if I am transferring my franchise?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
cessor franchise agreement | Payable if you are qualify for, and enter into, a successor term. |
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Transfer Fee Under the Franchise Agreement | 25% of the then-current franchise fee for any transfer resulting in a change of control; $5,000 for any other transfer. | 50% due when you provide us notice of the proposed transfer and 50% when the transfer closes | Payable to us if you transfer any interest in your Franchise Agreement, entity, or Studio. A "Control Transfer" occurs if there is a transfer of (i) any interest in the Franchise Agreement, (ii) the Studio or substantially all of its assets, (iii) more than 20% of the ownership interests in you, or (iv) any interests that result in a change in control of your entity. See Item 1 |
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 transfer fee is payable in two installments. 50% of the fee is due when you provide Beem Light Sauna with notice of the proposed transfer. The remaining 50% is due when the transfer closes.
The amount of the transfer fee depends on the type of transfer. If the transfer results in a change of control, the fee is 25% of the then-current franchise fee. A change of control includes transferring any interest in the Franchise Agreement, the Studio or substantially all of its assets, more than 20% of the ownership interests, or any interests that result in a change in control of your entity. For any other type of transfer, the fee is $5,000.
It's important to note that if the transfer does not close, Beem Light Sauna will refund the initial 50% payment, less their actual costs and expenses. This means that even if the transfer falls through, you may still incur some expenses related to the attempted transfer.