beem® Light SaunaFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A beem® Light Sauna franchise requires a total initial investment of $393K – $718K, including a $65K franchise fee and an ongoing 8.0% royalty[2]. Per the 2025 FDD, average unit revenue was $466K[2]. SBA 7(a) loans show a 0.0% charge-off rate across 48 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $393K – $718K
- 60th pct Healthcare
- Avg gross sales
- $466K
- 11th pct Healthcare
- Royalty
- 8.0%
- 45th pct Healthcare
- Units
- 39
- 52nd pct Healthcare
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Healthcare · color = vs category peers
Green = >15% above Healthcare avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Only 0.0% of 48 SBA loans charged off, well below the 16% franchise average.
37% cash-on-cash return (based on P&L Bottom Line). Above the 20% threshold most investors target.
Bottom line
- Total investment $393K – $718K including a $65K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $466K/year (median $409K), with an estimated 37% cash-on-cash return (based on P&L Bottom Line).
- Verdict A (Top Quintile) with a risk score of 18/100. SBA loan charge-off rate of 0.0% across 48 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- System growing at 1000.0% CAGR over 3 years with 39 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Beem Franchisor LLC
- Parent company
- Sequel Brands, LLC
- Incorporated in
- DE
- HQ
- 4000 MacArthur Blvd., Suite 800, Newport Beach, California 92660
- Auditor
- Moss Adams LLP
- Audited financials
Overview
About
Franchisees operate boutique infrared sauna studios, offering 30-45 minute sessions in private or semi-private sauna pods with membership-based or pay-per-visit revenue models. Day-to-day operations include staff management, member scheduling/retention, sauna maintenance/cleaning, and retail product sales (towels, skincare). Success depends on real estate, local marketing, member acquisition, and operational efficiency.
- CEO
- Ryan Junk
- Headquarters
- CA
- Founded
- 2021
- FDD year
- 2025
- States available
- 18
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $65K | $65K |
| Working capital (3–6 mo) | $15K | $50K |
| Equipment, build-out, other | $313K | $603K |
| Total initial investment | $393K | $718K |
Source: beem® Light Sauna 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$70K
15.0% margin
Unlevered ROIC
12%
EBITDA / total invested capital
Payback
8.4 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $393K – $718K
- Near category avg vs category
- Liquid capital req'd
- $15K – $50K
- Better than avg vs category
- Franchise fee
- $65K – $65K
- Below avg, review vs category
- Royalty
- 8.0%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 10.0%
- vs 9–13% typical
- Payback period
- 2.7 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 8.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $550 |
| Transfer fee | $5K |
| Renewal fee | $16K |
| Total fee load | 10.0% of rev |
Financial Performance
- Avg gross sales
- $466K
- Per unit, per year
- Median gross sales
- $409K
- Avg p&l bottom line
- $208K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 37.4%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- AUV and Active Member data
- Sample size
- 6 units
- vs category median 12
- Range (low → high)
- $303K→$711K
- Cohort dispersion (min → max)
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 201 Healthcare brands
Revenue is only 0.8x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Healthcare averages
How beem® Light Sauna Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 39
- Opened
- 33
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 97%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 1
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 7 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 48
- Loan volume
- $16.8M
- Median loan
- $478K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 6
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into beem® Light Sauna's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 6 lenders with concentration factor
- Per-state charge-off rates across 14 states
- Startup risk premium and job creation velocity
- 2-year lending trend
Instant access. No subscription.
With a 0.0% charge-off rate across 48 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
High-risk opportunity: explosive growth masking going concern status, management litigation, and unvalidated unit economics; avoid until corporate stability and franchisee profitability are independently confirmed.
Audited financials (Item 21)
Yes · Moss Adams LLP
Score breakdown · what drove the 18 / 100 rating
- 01HIGHGoing concern warning indicates serious financial/operational distress at corporate level
- 02MINORMultiple ongoing lawsuits involving franchisor officers (Geisler, Junk) across securities, derivative, and franchisee claims create management liability and distraction
- 03MINORExplosive unit growth (660% YoY) from low base (likely ~6 units prior year) suggests aggressive recruitment possibly masking unit quality/sustainability issues
- 04MINORNo Item 19 (Average Unit Volume) disclosure despite $465K average revenue claim — prevents validation of profitability claims
- 05HIGHSettled litigation with predecessor (Get Lit Concepts/Colorado Sweat Co) indicates operational or contractual problems in legacy system
- 06MED8% royalty on undisclosed net margins is unpredictable; high revenue doesn't guarantee profitability in fitness/wellness model
- 07MINORShared officers with Xponential Fitness (multi-brand franchisor) raises conflict-of-interest concerns and resource allocation questions
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Radius/Population |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Delaware |
| Litigation count | 8 |
Items 10, 11
Training & Operations
- Classroom training
- 45 hrs
- On-the-job training
- 10 hrs
- POS system
- MindBody
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: MindBody
Item 20 · call current owners
Franchisee Contacts
10 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
beem® Light Sauna · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a beem® Light Sauna franchise?
The total investment to open a beem® Light Sauna franchise ranges from $393K – $718K, with an initial franchise fee of $65K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do beem® Light Sauna franchise owners earn?
According to Item 19 of the beem® Light Sauna FDD, the average gross sales per unit is $466K. The median is $409K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is beem® Light Sauna's franchise failure rate?
Based on SBA 7(a) loan data, beem® Light Sauna has a charge-off rate of 0.0% across 48 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many beem® Light Sauna franchise locations are there?
As of their most recent FDD filing, beem® Light Sauna has 39 total units in the United States, including 2 franchised units and 1 company-owned units. 33 new units were opened in the latest reporting year.
Is beem® Light Sauna a good franchise to buy?
FranchiseVerdict rates beem® Light Sauna as a A-grade franchise with a risk score of 18 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.