Can Beem Light Sauna use Brand Fund monies for public relations events?
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.
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 company can use Brand Fund monies for public relations events. The document states that Beem Light Sauna may use the Brand Fund for costs associated with advertising, branding, marketing, public relations, and promotional programs. These activities may include conducting and administering public relations events.
Beem Light Sauna retains sole discretion over how the Brand Fund is used, meaning they have the final say in allocating funds to different marketing and promotional activities. While they may consult with a franchisee advisory council, the ultimate decision rests with Beem Light Sauna. This implies that while franchisees contribute to the Brand Fund, they do not have direct control over its expenditure.
For a prospective franchisee, this means that a portion of their gross sales (up to 4%, currently 2%) will go into the Brand Fund, which Beem Light Sauna can use for various marketing activities, including public relations events. While franchisees benefit from these activities, there is no guarantee that the benefits will be directly proportional to their contributions. Franchisees should be aware that Beem Light Sauna has the final say in how these funds are spent and that the franchisor is not considered a fiduciary with respect to the Brand Fund.