Can Beem Light Sauna's affiliates derive revenue from franchisee purchases and leases?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
Guarantee of Payment and Performance.** The Guarantors jointly and severally unconditionally guarantee to Franchisor and its Affiliates the payment and performance when due, whether by acceleration or otherwise, of all obligations, indebtedness, and liabilities of Franchisee to Franchisor, direct or indirect, absolute or contingent, of every kind and nature, whether now existing or incurred from time to time hereafter, whether incurred pursuant to the Franchise Agreement or otherwise, together with any extension, renewal, or modification thereof in whole or in part (the "Guaranteed Liabilities").
The Guarantors agree that if any of the Guaranteed Liabilities are not so paid or performed by Franchisee when due, the Guarantors will immediately do so.
The Guarantors further agree to pay all expenses (including reasonable attorneys' fees) paid or incurred in endeavoring to enforce this Guarantee or the payment of any Guaranteed Liabilities.
The Guarantors represent and agree that they have each reviewed a copy of the Franchise Agreement and have had the opportunity to consult with counsel to understand the meaning and import of the Franchise Agreement and this Guarantee.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna Franchise Disclosure Document, Beem Franchisor LLC can benefit from franchisee dealings through a Payment and Performance Guarantee. This guarantee ensures that the franchisor and its affiliates receive payments and fulfillment of all obligations from the franchisee.
Specifically, the Payment and Performance Guarantee mandates that the franchisee's financial and performance obligations are secured not only by the franchisee but also by guarantors who agree to cover these liabilities. This includes all forms of indebtedness and responsibilities, whether they are direct or indirect, absolute or contingent. The guarantee extends to any modifications or renewals of the Franchise Agreement.
This arrangement means that Beem Light Sauna's affiliates are protected financially, as the guarantors are responsible for covering any unpaid debts or unfulfilled obligations of the franchisee. Furthermore, the guarantors are liable for all expenses, including attorney fees, associated with enforcing the guarantee or securing payments. This structure ensures that Beem Light Sauna and its affiliates have a robust mechanism to safeguard their financial interests in the event a franchisee defaults.