Does Beem Light Sauna's consent to a transfer waive any claims against the transferor?

According to Beem Light Sauna's 2025 Franchise Disclosure Document, Beem Light Sauna's consent to a transfer of the franchise agreement does not constitute a waiver of any claims that they may have against the transferor. Additionally, it does not waive Beem Light Sauna's right to demand exact compliance with the terms of the franchise agreement. This policy is designed to protect Beem Light Sauna's interests and ensure that franchisees continue to adhere to the franchise agreement's terms, even during and after a transfer.

This provision means that if a franchisee transfers their Beem Light Sauna franchise to a new owner, the original franchisee remains liable for any existing breaches or violations of the franchise agreement that occurred before the transfer. For example, if the original franchisee owed outstanding fees or failed to meet certain operational standards, Beem Light Sauna can still pursue those claims against the original franchisee, even after the transfer has been approved and completed. The new franchisee is only responsible for breaches or violations that occur after the transfer date.

For a prospective Beem Light Sauna franchisee, this clause highlights the importance of fulfilling all obligations and adhering to the franchise agreement's terms throughout the duration of their ownership. It also underscores the need to address any outstanding issues or potential breaches before considering a transfer, as these issues will not simply disappear upon the transfer of the franchise. This ensures that Beem Light Sauna can maintain its brand standards and protect its interests, regardless of changes in ownership.