Bottom line
- Total investment $393K – $718K including a $65K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $466K/year (median $409K).
- Rated MODERATE with a risk score of 61/100. SBA loan default rate of 0.0% across 98 loans (below the industry average).
- 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
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one beem® Light Sauna unit return on the cash you put in?
Unlevered ROIC · per unit
16%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 beem® Light Sauna units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.2M
on $6.1M purchase
Total debt
$4.8M
SBA $3.0M + senior + seller note
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 32 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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
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.
Score breakdown · what drove the 61 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
89 numbers
One-time purchase · CSV download · Validation questions included
FDD download
beem® Light Sauna · FDD (2025) PDF