Can Beem Light Sauna use revenue received from suppliers without restriction?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge and agree that we and/or our Affiliates may derive revenue based on your purchases and leases, including from charging you for products and services we or our Affiliates provide to you and from promotional allowances, volume discounts, and other payments made to us by suppliers and/or distributors that we designate or approve for some or all of our franchisees.
We and our Affiliates may use all amounts received from suppliers and/or distributors, whether or not based on your or other franchisees' actual or prospective dealings with them, without restriction for any purposes we or our Affiliates deem appropriate.
If you derive any revenue based on payments or promotional allowances received from suppliers and/or distributors, you must report to us the details of the arrangement and such revenue shall be included as part of your Gross Sales.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, Beem Light Sauna and its affiliates have the right to use revenue received from suppliers and distributors without any restrictions. This revenue may come from various sources, including payments for products and services provided to franchisees, promotional allowances, and volume discounts negotiated with suppliers.
This means that Beem Light Sauna is not obligated to share these revenues with franchisees or earmark them for specific purposes. They can allocate these funds as they see fit, which could include covering operational costs, investing in marketing initiatives, or distributing profits to the company's owners.
For a prospective Beem Light Sauna franchisee, this arrangement highlights the importance of understanding all revenue streams associated with the franchise system. While franchisees are responsible for generating sales through their studios, Beem Light Sauna also benefits financially from supplier relationships. Franchisees should inquire about the magnitude of these supplier revenues and how they contribute to the overall financial health and stability of the Beem Light Sauna franchise system. Additionally, if a franchisee receives revenue from payments or promotional allowances received from suppliers or distributors, they must report the details of the arrangement to Beem Light Sauna, and such revenue will be included as part of their Gross Sales.