Where will binding arbitration take place for Beem Light Sauna disputes?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| u. | Dispute resolution by arbitration or mediation | Sections 16.2 and 16.3 | Prior to filing most proceedings, a party must submit the dispute to non-binding mediation. Except for disputes arising under the Lanham Act, disputes that otherwise relate to the validity or ownership of any of the Intellectual Property, disputes that involve enforcement of our intellectual property rights or protection of our Proprietary Information, and disputes related to payments of amounts that you owe to us or our affiliates, all disputes will be resolved by binding arbitration at the American Arbitration Associations' offices or other suitable office that we select in the metropolitan area in which our principal place of business is then located (currently, Newport Beach, California) (subject to |
| v. | Choice of forum | Section 16.3(d) | state law). Subject to arbitration obligations, with limited exception, litigation is in the United States District Court for the district in which we have our principal place of business at the time of the filing (currently, Newport Beach, California) (or if, federal jurisdiction cannot be obtained, the state court in such city) |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 55–62)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, binding arbitration will occur at the American Arbitration Association's offices or another suitable office selected by Beem Light Sauna. This office will be located in the metropolitan area where Beem Light Sauna's principal place of business is situated. Currently, their principal place of business is in Newport Beach, California. This is subject to state law.
However, there are exceptions to this arbitration clause. Disputes arising under the Lanham Act, those related to the validity or ownership of intellectual property, enforcement of intellectual property rights, protection of proprietary information, and disputes related to payments owed to Beem Light Sauna or its affiliates will not be subject to binding arbitration.
For a prospective Beem Light Sauna franchisee, this means that most disputes will be resolved through binding arbitration in Newport Beach, California, which may require travel and associated costs if the franchisee is not located in that area. It is important to note the exceptions to the arbitration clause, as these types of disputes may be litigated in the United States District Court for the district in which Beem Light Sauna has its principal place of business (Newport Beach, California) or, if federal jurisdiction cannot be obtained, the state court in such city. Franchisees should be aware of these stipulations and consider the potential implications for dispute resolution.