Can Beem Light Sauna use Brand Fund monies for promotional programs?
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 promotional programs. Beem Light Sauna has the discretion to use the Brand Fund for costs associated with advertising, branding, marketing, public relations, and promotional programs. These activities are determined by Beem Light Sauna and must benefit the brand or the studios generally.
Specifically, the FDD lists examples of how the Brand Fund can be used, including advertising campaigns, website maintenance, social media activities, direct mail advertising, market research, branding studies, and engaging advertising agencies. The Brand Fund can also cover salaries and benefits for marketing personnel, purchasing promotional items, and conducting promotions and community events. Beem Light Sauna also uses the fund to cover the administrative costs related to the Brand Fund itself and the implementation of its supported programs.
While Beem Light Sauna may consult with a franchisee advisory council or a committee of franchisees regarding marketing programs, they retain the right to direct all marketing programs and uses of the Brand Fund. This includes the final decision over creative concepts, materials, and media used in the programs. The FDD specifies that in fiscal year 2024, Brand Fund expenditures were allocated as follows: 25.78% on production, 13.61% on media placement, and 60.61% on administrative expenses.
Beem Light Sauna does not guarantee that franchisees will benefit from the Brand Fund in proportion to their contributions. However, any sales and other materials produced with Brand Fund monies will be made available to franchisees without charge or at a reasonable cost, with the proceeds of such sales deposited back into the Brand Fund.