Who are some of the AKT Plaintiffs named in the AKT Lawsuit described in the Beem Light Sauna FDD?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
This action was filed by certain former AKT® franchisees and their owners, including Dance Fitness Michigan LLC, Property Maintenance, Inc., 6pk Mason LLC, 6pk Liberty LLC, Teeny Turner LLC, S2 Fitness Enterprises, LLC, Soros & Associates, LLC, AdEdge Services Inc., Deanna Alfredo, Amanda Davis, Nisha Moeller, Samantha Cox, Suzanne Fischer, Nichole Soros, Michael Soros, Paul Dumas, Jodi Dumas and Laura Hannan (collectively, the "AKT Plaintiffs") against (i) AKT Franchise, LLC and AKT Franchise SPV, LLC; (ii) Xponential, Xponential Fitness, Inc., XPOF Assetco, LLC, and Xponential Intermediate Holdings, LLC (collectively, the "Xponential Entities"); (iii) H&W Franchise Intermediate Holdings LLC, H&W Investco LP, and H&W Investco II LP (collectively, the "H&W Entities"); (iv) LAG Fit, Inc.; (v) MGAG LLC; and (vi) Anthony Geisler, Mark Grabowski, Melissa Chordock, Elizabeth "Liz" Batterton Cooper, Alexander Cordova, Lance Freeman, Ryan Junk, Megan Moen, John Meloun, Sarah Luna, Tori Johnston, Justin LaCava, Bobby Tetsch, Brandon Wiles, Jason Losco, Brittney Holobinko, Amy Wehrkamp, Scott Svilich, Sarah Nolan, Emily Brown, Rachel Markovic, and Brenda Morris (collectively, (i) through (vi), the "AKT Defendants") after AKT Franchise, LLC initiated an arbitration against and sought damages from certain of them for breaches of their franchise agreements.
Source: Item 3 — LITIGATION (FDD pages 13–18)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, the AKT Lawsuit involves several named plaintiffs who are former AKT franchisees or their owners. These AKT Plaintiffs include Dance Fitness Michigan LLC, Property Maintenance, Inc., 6pk Mason LLC, 6pk Liberty LLC, Teeny Turner LLC, S2 Fitness Enterprises, LLC, Soros & Associates, LLC, AdEdge Services Inc., Deanna Alfredo, Amanda Davis, Nisha Moeller, Samantha Cox, Suzanne Fischer, Nichole Soros, Michael Soros, Paul Dumas, Jodi Dumas and Laura Hannan.
The AKT Lawsuit, filed on August 30, 2023, in the Superior Court of the State of California, County of Orange, alleges that the AKT Defendants violated pre-sale disclosure obligations under various state franchise laws, fraudulently induced investments in franchises, breached the implied covenant of good faith and fair dealing, breached a purported agreement to provide financing, and engaged in unfair and deceptive trade practices. The AKT Plaintiffs are seeking declaratory and injunctive relief, rescission of their franchise agreements, actual and special damages, and attorneys' fees, costs, and interest.
It is important for a prospective Beem Light Sauna franchisee to note that Ryan Junk, the current Chief Executive Officer of Beem Light Sauna, previously served as Chief Operating Officer of Xponential and its subsidiaries, and was named as a defendant in the AKT Lawsuit during his tenure with Xponential. This lawsuit, along with other similar claims and allegations against Xponential and its affiliates, is disclosed in the FDD to provide transparency regarding potential risks and conflicts of interest. While Beem Light Sauna states that it is not affiliated with Xponential and that these lawsuits do not involve Beem Light Sauna or its affiliates, the involvement of its CEO in past litigation related to franchising practices is a factor a potential franchisee may want to consider.