Does the Beem Light Sauna agreement prohibit franchisees from diverting business or customers to a Competitive Business during the term of the agreement?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) own, manage, engage in, be employed by, advise, make loans to, lease or sublease space to, or have any other interest in (i) any sauna studio, salon with a sauna offering, therapeutic light or laser treatment center, weight loss center, business selling nutritional supplements, or business involved in self-care, (ii) any business that offers products, services, or therapy programs or sessions that are similar to those offered by a Studio, or (iii) any entity that grants franchises or licenses for any of the businesses in (i) or (ii) (collectively, each, a "Competitive Business") at any location in the United States;
(b) divert or attempt to divert any business or customer or potential business or customer of the Studio to any Competitive Business, by direct or indirect inducement or otherwise;
(c) perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks and the System; or
(d) use any vendor relationship established through your association with us for any purpose other than to purchase products or equipment for use or retail sale in the Studio.
**5.
Noncompete After Association Ends.** For two years after your association with us ends for any reason, you will be subject to the same restrictions as in Section 4, except the restrictions in Sections 4(a) and 4(b) will be geographically limited to any Competitive Business that is located within a 10-mile radius of our Studio or any other Studio that is operating or under development at the time your association with us ends.
- **6.
Remedies**.
If you breach or threaten to breach this Agreement, you agree that we will be entitled to injunctive relief (without posting bond) as well as a suit for damages.
- **7.
Severability.** If any part of this Agreement is declared invalid for any reason, the invalidity will not affect the remaining provisions of this Agreement.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna Franchise Disclosure Document, franchisees are prohibited from diverting business or customers to a Competitive Business during the term of the agreement. Specifically, the agreement prohibits franchisees from diverting or attempting to divert any business or customer or potential business or customer of the Studio to any Competitive Business, by direct or indirect inducement or otherwise.
A "Competitive Business" is defined as (i) any sauna studio, salon with a sauna offering, therapeutic light or laser treatment center, weight loss center, business selling nutritional supplements, or business involved in self-care, (ii) any business that offers products, services, or therapy programs or sessions that are similar to those offered by a Studio, or (iii) any entity that grants franchises or licenses for any of the businesses in (i) or (ii).
This non-compete provision is in place to protect the Beem Light Sauna brand and system. If a franchisee breaches this agreement, Beem Light Sauna is entitled to injunctive relief (without posting bond) as well as a suit for damages. After the franchise agreement ends, the franchisee is subject to the same restrictions for two years, but the restrictions are geographically limited to any Competitive Business that is located within a 10-mile radius of the Studio or any other Studio that is operating or under development at the time the agreement ends.