Can Beem Light Sauna use Brand Fund monies for engaging advertising agencies?
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 Beem Light Sauna's 2025 Franchise Disclosure Document, the Brand Fund can be used to engage advertising agencies. Specifically, Beem Light Sauna has the discretion to use the Brand Fund for costs associated with advertising, branding, marketing, public relations, promotional programs, and other activities that would benefit the brand or studios. This includes engaging advertising and/or public relations agencies and paying any related retainers and fees.
For a prospective Beem Light Sauna franchisee, this means that a portion of their contribution to the Brand Fund, which is up to 4% (currently 2%) of Gross Sales, may be allocated to hiring advertising agencies to promote the brand. While franchisees contribute to the Brand Fund, Beem Light Sauna retains the right to direct all marketing programs and uses of the Brand Fund, including the final decision over creative concepts, materials, and media used in the programs and their placement.
In fiscal year 2024, the Brand Fund expenditures were allocated as follows: 25.78% on production, 13.61% on media placement, and 60.61% on administrative expenses. It is important to note that Beem Light Sauna does not guarantee that franchisees will benefit from the Brand Fund in proportion to their contributions. Franchisees can request an unaudited statement of contributions and expenditures for the Brand Fund within 60 days after the close of the fiscal year.