Beem Franchise
Cost, fees, owner earnings, closure rate and litigation for a Beem franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
Beem discloses little or no owner-earnings data (Item 19) — the franchisor won't put real profit in writing.
What their own earnings claim actually says
No financial performance representations made. Franchisor explicitly states it does not authorize any financial projections or income representations.
What a Beem franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $65,000 | Item 5 — paid up front, before you open |
| Royalty | 8% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 2% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 10% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $436,196 – $761,154 | Item 7 — franchisor's own low/high estimate |
8% royalty + 2% (up to 4%) Brand Fund + $550/mo technology + $2,500/mo local marketing minimum. Multiple additional fees for training, transfers, audits.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Beem system size and owner turnover
| Total outlets | 66 |
| Ceased operations | 2 |
| Terminated by franchisor | 0 |
| Transferred to new owners | 2 |
| Closure rate | 3.0% of outlets |
New franchise system (Jan 2025 acquisition). 2025: 2 ceased operations, 1 reacquired, minimal terminations.
From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Beem worth it? — how it compares to 71 similar franchises
| Ongoing fees | 10% of sales | steeper than 76% of fitness & gyms franchises |
| Startup cost | from $436,196 | pricier than 71% of peers |
| Disclosure honesty | Grade F | less honest than most of the category |
| Closure rate | 3.0% of outlets | worse than 70% of peers |
| Disclosed lawsuits | 8 | more litigious than 89% of peers |
Benchmarked against every fitness & gyms franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Beem
The franchisor's framing: No financial performance representations made. Franchisor explicitly states it does not au… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
Beem franchise — frequently asked
- How much does a Beem franchise cost?
- The FDD lists a total initial investment of about $436,196–$761,154, including a $65,000 initial franchise fee.
- How much do Beem franchise owners make?
- Beem discloses little or no earnings data (Item 19) — meaning the franchisor won't put real owner profit in writing. That's a red flag worth questioning.
- What are the Beem franchise fees?
- Beem's FDD discloses a $65,000 initial franchise fee, a 8% royalty on gross sales, a 2% advertising-fund contribution, for roughly 10% of gross sales in recurring fees before rent, labor, or debt service. 8% royalty + 2% (up to 4%) Brand Fund + $550/mo technology + $2,500/mo local marketing minimum. Multiple additional fees for training, transfers, audits.
- What is the Beem franchise profit margin?
- Beem discloses no Item 19 earnings representation, so no profit margin can be derived from the FDD at all. Any margin figure quoted elsewhere is an estimate, not a disclosure.
- What is the Beem franchise failure rate?
- New franchise system (Jan 2025 acquisition). 2025: 2 ceased operations, 1 reacquired, minimal terminations.
- How many Beem locations are there?
- Beem's FDD reports 66 total outlets, with 2 that ceased operations in the most recent reporting year and 2 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Beem have complaints or lawsuits?
- Beem discloses 8 legal matters in Item 3 of its FDD. Item 3 covers the franchisor's litigation history, which is the closest thing to a public record of how it treats franchisees — read the case descriptions, not just the count.
- Is a Beem franchise worth it?
- It depends on the numbers, not the pitch. Beem scores F on disclosure honesty, carries about 10% of sales in ongoing fees, and discloses 8 legal matters. Get the real owner take-home before you sign.
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Compare Beem to similar franchises
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Source: MN CARDS 36678-202605-09 (Clean FDD 2026). FranchiseValidate is independent and not affiliated with Beem or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.