factual

What claims are exceptions to the mandatory mediation requirement for Beem Light Sauna franchisees?

Beem_Light_Sauna Franchise · 2025 FDD

Answer from 2025 FDD Document

  1. CONSENT TO JURISDICTION. The following is added to the end of Section 16.3(d) ("Excepted Disputes") of the Franchise Agreement:

However, subject to your arbitration obligations, nothing in this Section affects your right under the Maryland Franchise Registration and Disclosure Law to bring a lawsuit in Maryland for claims arising under that law.

  1. LIMITATION OF CLAIMS. The following sentence is added to the end of Section 16.8 ("Limitation of Claims") of the Franchise Agreement:

Any limitation of claims will not act to reduce the three-year statute of limitations afforded you for bringing a claim under the Maryland Franchise Registration and Disclosure Law.

Source: Item 23 — RECEIPT (FDD pages 71–230)

What This Means (2025 FDD)

According to the 2025 Beem Light Sauna Franchise Disclosure Document, there are exceptions to the mandatory pre-litigation mediation requirement. Specifically, this requirement does not apply to claims arising under the Maryland Franchise Registration and Disclosure Law, allowing franchisees in Maryland to bring a lawsuit in Maryland for such claims, subject to their arbitration obligations.

This exception is significant for prospective Beem Light Sauna franchisees in Maryland as it provides an alternative legal avenue for resolving disputes related to franchise registration and disclosure, potentially offering a more direct and efficient means of addressing grievances under Maryland law. The FDD also states that any limitation of claims will not reduce the three-year statute of limitations afforded to franchisees for bringing a claim under the Maryland Franchise Registration and Disclosure Law.

It is important for potential franchisees to understand these exceptions, especially if they are considering opening a Beem Light Sauna franchise in Maryland, as it affects their rights and options in case of a dispute. Franchisees should consult with a legal professional to fully understand their rights and obligations under both the franchise agreement and applicable state laws.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.