Does the Beem Light Sauna agreement allow for class-wide arbitration?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Individual Actions. We and you agree that arbitration will be conducted on an individual, not a class-wide, basis and that an arbitration proceeding between us and you may not be consolidated with any other arbitration proceeding between us and any other person. Notwithstanding the foregoing or anything to the contrary in this Section 16.3, if any court or arbitrator determines that this prohibition on class-wide arbitration is unenforceable with respect to a dispute that otherwise would be subject to arbitration under this Section 16.3, then the parties agree that this arbitration clause shall not apply to that dispute and that such dispute will be resolved in a judicial proceeding in accordance with Section 16.3(d) (Excepted Disputes).
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, the franchise agreement does not allow for class-wide arbitration. The agreement specifies that any arbitration will be conducted on an individual basis, meaning a franchisee cannot consolidate their arbitration proceeding with any other person against Beem Light Sauna.
However, there is a condition. If a court or arbitrator determines that the prohibition on class-wide arbitration is unenforceable, then this arbitration clause will not apply to the dispute, and the dispute will be resolved in a judicial proceeding.
This clause means that franchisees are giving up some rights to collective action. Franchisees should seek legal counsel to fully understand the implications of waiving the right to participate in a class-wide arbitration before signing the agreement.