Under what circumstances does a Beem Light Sauna franchisee pay a Management Fee?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
a 92660 Email: trevor@sequelbrands.com
The notice address for Franchisee shall be:
Franchisee:
Attn:
Address:
Email:
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- Additional Terms; Inconsistent Terms (if any) (Section 17.19):
- A. Section 3.12 (Music Licensing Fee) and all references in this Agreement to Music Licensing Fee(s) are deleted.
- B. Section 6.5(a) (Studio Appearance Maintenance) is amended by adding the following to the end of that Section:
Without limiting the generality of this Section 6.5(a), you must replace and update, at your expense, all Studio infrared sauna equipment at least once every four years.
C. Section 7.3(c)(Minimum Marketing Expenditure) is amended by adding the following:
You may elect to have us or our Affiliate or approved supplier conduct, on your behalf, local advertising and promotion activities for your Studio in accordance with Section 7.3, with the types of such advertising and promotion activities to be determined by us or our Affiliate. Under t
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna Franchise Disclosure Document, a franchisee may be required to pay an ad management fee under specific circumstances related to local advertising and promotion. If a franchisee elects to have Beem Light Sauna, its affiliate, or an approved supplier conduct local advertising and promotion activities for their studio, they will be required to pay the Marketing Spending Requirement, as well as the then-current monthly ad management fee.
As of the effective date of the franchise agreement, the monthly ad management fee is $850. However, this fee is subject to increase with prior written notice, but it will not exceed $1,500 per month. It's important to note that any ad management fees paid by the franchisee do not count towards the Marketing Spending Requirement.
This arrangement provides franchisees with the option to outsource their local advertising and promotion efforts to Beem Light Sauna or its approved vendors, but it comes at an additional cost. Franchisees should carefully consider whether this service is beneficial for their business and factor in the potential for fee increases when making their decision.