Can Beem Light Sauna use Brand Fund monies for community involvement activities?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
We may use monies in the Brand Fund and any earnings on the Brand Fund account for any costs associated with advertising (media and production), branding, marketing, public relations and/or promotional programs and materials, and any other activities we determine, in our sole discretion, would benefit the Brand or the Studios generally. These activities may include, but are not limited to: (i) advertising campaigns in various media; (ii) creation, maintenance, and optimization of the System Website or other websites; (iii) keyword or adword purchasing programs; (iv) conducting and managing social media activities; (v) direct mail advertising; (vi) market research, including secret shoppers and customer satisfaction surveys; (vii) branding studies; (viii) engaging advertising and/or public relations agencies and paying any related retainers and fees; (ix) paying the salaries and benefits of our marketing and brand-building personnel and any other overhead related to our marketing department; (x) purchasing promotional items; (xi) conducting and administering promotions, contests, giveaways, public relations events, and community involvement activities; (xii) marketing the sale of Franchises; (xiii) providing promotional and other marketing materials and services to our franchisees; and (xiv) reasonable administrative costs and overhead we incur related to the administration of the Brand Fund and the implementation of Brand Fund-supported programs.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 37–47)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna Franchise Disclosure Document, the Brand Fund can be used for community involvement activities. Beem Light Sauna has established a Brand Fund where franchisees contribute a percentage of their gross sales. Currently, franchisees must contribute 2% of gross sales, although they may be required to contribute up to 4%.
Beem Light Sauna has the discretion to use the Brand Fund for various activities that benefit the Beem Light Sauna brand or its studios. These activities include advertising campaigns, website maintenance, social media management, market research, and public relations. Specifically, the Brand Fund can be used for conducting and administering promotions, contests, giveaways, public relations events, and community involvement activities.
While franchisees contribute to the Brand Fund, Beem Light Sauna retains control over how the funds are spent. The FDD does not guarantee that franchisees will directly benefit from the Brand Fund in proportion to their contributions. Beem Light Sauna will provide an unaudited statement of contributions and expenditures for the Brand Fund within 60 days after the close of the fiscal year to franchisees who request it.