Can Beem Light Sauna use Brand Fund monies for giveaways?
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.
We may consult with, in our sole discretion, a franchisee advisory council selected by franchisees or a committee of franchisees that we appoint regarding marketing programs.
However, we have the right to direct all marketing programs and uses of the Brand Fund, with the final decision over creative concepts, materials, and media used in the programs and their placement.
We do not guarantee that you will benefit from the Brand Fund in proportion to your contributions to the Brand Fund.
We will make any sales and other materials produced with Brand Fund monies available to you without charge or at a reasonable cost, and we will deposit the proceeds of such sales into the Brand Fund.
In fiscal year 2024, Brand Fund expenditures by Predecessor were allocated as follows: 25.78% on production ; 13.61% on media placement; 60.61% administrative expenses.
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 for giveaways. The document states that the Brand Fund can cover costs associated with advertising, branding, marketing, public relations, promotional programs, and other activities that Beem Light Sauna determines would benefit the brand or studios. These activities specifically include conducting and administering promotions, contests, and giveaways. Therefore, Beem Light Sauna has the discretion to use the Brand Fund for such purposes.
As a franchisee, it's important to understand that while you contribute to the Brand Fund, Beem Light Sauna has the final say on how the funds are spent. The document mentions that Beem Light Sauna may consult with a franchisee advisory council or a committee of franchisees, but the ultimate decision-making authority rests with Beem Light Sauna. The FDD also states that there is no guarantee that a franchisee will benefit from the Brand Fund in proportion to their contributions.
In 2024, the Brand Fund expenditures were allocated with 25.78% spent on production, 13.61% on media placement, and 60.61% on administrative expenses. This allocation gives a franchisee insight into how the fund has been used historically. Franchisees can request an unaudited statement of contributions and expenditures for the Brand Fund within 60 days after the close of Beem Light Sauna's fiscal year to stay informed about how the money is being spent.
Prospective franchisees should consider these factors and ask Beem Light Sauna for more details on the Brand Fund's governance, planned uses, and historical performance. Understanding how the Brand Fund is managed and allocated is crucial for evaluating the potential return on investment and aligning expectations with the franchisor's strategies.