During association with Beem Light Sauna, can a franchisee lease or sublease space to a competitive business?
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, during the term of the franchise agreement, a franchisee is restricted from leasing or subleasing space to a Competitive Business. 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 restriction is part of a broader non-compete agreement that Beem Light Sauna franchisees must adhere to during their association with the company. This agreement also prevents franchisees from owning, managing, engaging in, being employed by, advising, making loans to, or having any other interest in a Competitive Business. The non-compete agreement also restricts franchisees from diverting business or customers from the Studio to any Competitive Business, performing any act injurious to the goodwill associated with the Marks and the System, or using vendor relationships established through their association with Beem Light Sauna for unauthorized purposes.
After the franchise agreement ends, the franchisee is still subject to similar restrictions for two years. However, the restrictions on owning, managing, or engaging in a Competitive Business, and diverting business or customers, are geographically limited to a 10-mile radius of the franchisee's Studio or any other Beem Light Sauna Studio that is operating or under development at the time the association ends.
Beem Light Sauna emphasizes the importance of protecting its brand and business model. If a franchisee breaches the non-compete agreement, Beem Light Sauna is entitled to injunctive relief and can also sue for damages. This clause ensures that franchisees remain committed to the Beem Light Sauna system and do not use their knowledge and resources gained from the franchise to benefit competing businesses, even after they leave the franchise system.