What conditions apply to Beem Light Sauna transfers that do not result in a Control Transfer?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
(o) You and your Owners and the transferee and its owners must execute a consent to Transfer agreement in a form that we prescribe that describes the conditions that must be complied with in order to obtain our consent to the Transfer.
13.5 Non-Control Transfers.
For any Transfer that does not result in a Control Transfer, in addition to any other conditions that we reasonably specify, you and/or your transferee must satisfy (unless waived by us) the conditions in Sections 13.4 (Control Transfer),
except the following conditions will not apply: Section 13.4(g) (obtain landlord's consent), 13.4(i) (complete training), 13.4(k) (sign new franchise agreement), and 13.4(l) (renovate Studio). You and your Owners must sign the form of agreement and related documents that we then specify to reflect your new ownership structure.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, a transfer that does not result in a control transfer is subject to specific conditions. Both the transferring franchisee and the new transferee must agree to the terms outlined in a consent to transfer agreement provided by Beem Light Sauna. This agreement will detail the necessary conditions for obtaining Beem Light Sauna's consent to the transfer.
In addition to any other conditions that Beem Light Sauna specifies, the franchisee and/or transferee must generally meet the same conditions required for a control transfer. However, some exceptions exist. The conditions that do not apply to non-control transfers include obtaining the landlord's consent, completing training, signing a new franchise agreement, and renovating the studio. The franchisee and their owners must also sign any additional agreements or documents that Beem Light Sauna requires to reflect the new ownership structure.
These stipulations ensure that Beem Light Sauna maintains control over who operates its franchises and that the brand's standards are upheld even when the original franchisee does not fully relinquish control. Prospective franchisees should carefully review all transfer conditions with Beem Light Sauna to understand their obligations and the process for obtaining approval for any future transfer, whether it is a control transfer or not. Understanding these conditions is crucial for franchisees planning for future business transitions or changes in ownership structure.