What constitutes a curable default under the Beem Light Sauna Franchise Agreement?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| g. | "Cause" defined – curable defaults | Section 14.1 | You have 10 days to cure the non-payment of any amounts owed to us or our affiliates or your failure to make sufficient funds available to us; 24 hours to cure non-compliance with any law, regulation or ordinance which results in a threat to the public's health or safety; and 30 days to cure a failure to comply with any other provision of the Franchise Agreement, except as described in (h) below. While termination of the Development Agreement does not impact any then-effective franchise agreements, termination of a franchise agreement entitles us to terminate the Development Agreement. |
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, a curable default allows a franchisee a specific period to correct the issue before Beem Light Sauna can terminate the agreement.
Specifically, a Beem Light Sauna franchisee has 10 days to cure the non-payment of any amounts owed to Beem Light Sauna or its affiliates, or failure to make sufficient funds available to them. The franchisee has 24 hours to cure non-compliance with any law, regulation, or ordinance which results in a threat to the public's health or safety. For any other provision of the Franchise Agreement, the franchisee has 30 days to cure the failure to comply, except as described in non-curable defaults.
It is important for a prospective Beem Light Sauna franchisee to understand these conditions, as failure to cure a default within the specified time can lead to termination of the franchise agreement. Understanding the distinction between curable and non-curable defaults is crucial for maintaining a good standing with the franchisor and protecting the investment in the Beem Light Sauna franchise.