Who bears the expense of the insurance coverage for a Beem Light Sauna Studio?

According to the 2025 Beem Light Sauna FDD, the franchisee is primarily responsible for obtaining and maintaining the required insurance coverage for their studio. This includes covering the costs associated with the insurance premiums. Beem Light Sauna has the right to increase the required coverage amounts or require different or additional insurance at any time to reflect inflation, new risks, changes in law, higher damage awards, or other relevant changes. Beem Light Sauna must provide at least 60 days' notice before increasing the amounts of coverage required.

The franchisee must ensure that all insurance policies name Beem Light Sauna and any designated affiliates as additional insured parties. Additionally, the insurance policies must provide for 30 days' prior written notice to Beem Light Sauna in case of any material modification or cancellation of the policy. The franchisee is also obligated to periodically send Beem Light Sauna a valid certificate of insurance or a duplicate policy as proof of maintained coverage and premium payments.

If a Beem Light Sauna franchisee fails to obtain or maintain the specified insurance, Beem Light Sauna has the option, but not the obligation, to obtain such insurance on behalf of the franchisee and the studio. In such cases, the franchisee is required to cooperate with Beem Light Sauna, and Beem Light Sauna may charge the franchisee up to 120% of their and their affiliates' costs and expenses related to obtaining and maintaining the insurance. This clause ensures that Beem Light Sauna can protect its interests and brand even if the franchisee does not comply with the insurance requirements.