Does the Beem Light Sauna agreement become binding before it is executed by both parties?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
- 17.13 Execution.
This Agreement shall not be binding on either party until it is executed by both parties.
This Agreement may be executed in two or more counterparts, each of which will be deemed an original, and all of which will constitute one and the same instrument.
Documents executed, scanned, and transmitted electronically and electronic signatures shall be deemed original signatures for purposes of this Agreement and all related matters, with such scanned and electronic signatures having the same legal effect as original signatures.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna Franchise Disclosure Document, the franchise agreement is not binding on either party until it has been fully executed by both parties. This means that neither Beem Light Sauna nor the franchisee is legally obligated by the terms of the agreement until both have signed it.
This clause protects both the franchisor and the franchisee. Beem Light Sauna is not bound to grant a franchise until they have a signed agreement, and the franchisee is not committed to opening a Beem Light Sauna studio until they formally agree to the terms. This allows both parties to review the agreement thoroughly and make any necessary adjustments before entering into a binding contract.
Furthermore, the agreement can be executed in multiple counterparts, each considered an original, forming a single instrument. Documents and signatures transmitted electronically are considered original, having the same legal effect as physical signatures. This facilitates a more efficient and modern signing process for Beem Light Sauna franchise agreements.