What is the case number for the AKT Lawsuit, as stated in the Beem Light Sauna FDD?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
Ryan Junk, our Chief Executive Officer, previously served as Chief Operating Officer of Xponential and various subsidiaries of Xponential, and Anthony Geisler, the Chief Executive Officer of Sequel Brands, previously served in the same role for Xponential and various subsidiaries of Xponential. They have been named as defendants, along with other officers and employees of Xponential, in the following lawsuits involving Xponential and its affiliates, which involve similar claims and allegations. We are not affiliated with Xponential and these lawsuits do not involve us or our affiliates.
- Dance Fitness Michigan LLC, et al. v.
AKT Franchise, LLC, et al., filed August 30, 2023, Superior Court of the State of California, County of Orange, Case No. 30-2023-01345433- CU-AT-CXC (the "AKT Lawsuit").
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, filed on August 30, 2023, in the Superior Court of the State of California, County of Orange, has the case number 30-2023-01345433- CU-AT-CXC. This lawsuit involves allegations against Ryan Junk, Beem Light Sauna's Chief Executive Officer, in his previous role at Xponential. It is important to note that Beem Light Sauna states they are not affiliated with Xponential and that this lawsuit does not involve Beem Light Sauna or its affiliates.
The lawsuit, Dance Fitness Michigan LLC, et al. v. AKT Franchise, LLC, et al., includes claims of pre-sale disclosure violations under franchise investment laws, fraudulent inducement to invest in franchises, breach of the implied covenant of good faith and fair dealing, breach of a purported agreement to provide certain financing, and unfair and deceptive trade practices. The plaintiffs in the AKT Lawsuit are seeking declaratory and injunctive relief, rescission of their franchise agreements, actual and special damages, and attorneys' fees, costs, and interest.
Prospective Beem Light Sauna franchisees should be aware of this litigation involving its CEO's prior affiliations, even though the company asserts it is not directly involved. It is crucial to understand the potential implications of such lawsuits on the company's leadership and reputation. While the FDD states the lawsuit does not involve Beem Light Sauna, franchisees should consider asking the franchisor for updates on the matter and any potential impact it could have on the franchise system.