factual

What costs and expenses can Beem Light Sauna be reimbursed for if they enforce the guarantee?

Beem_Light_Sauna Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. Enforcement Costs. If Franchisor (a) engages legal counsel in connection with any failure by any Guarantor to comply with this Guarantee or (b) is required to enforce this Guarantee in a judicial or arbitration proceeding and prevails in such proceeding, Franchisor shall be entitled to reimbursement of its costs and expenses, including, but not limited to, reasonable accountants', attorneys', arbitrators', and expert witness fees, costs of investigation and proof of facts, court costs, and other litigation expenses, and travel and living expenses, whether incurred prior to, in preparation for, or in contemplation of the filing of any such proceeding.

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

What This Means (2025 FDD)

According to Beem Light Sauna's 2025 Franchise Disclosure Document, if Beem Light Sauna engages legal counsel due to a guarantor's failure to comply with the guarantee, or if they are required to enforce the guarantee through judicial or arbitration proceedings and prevail, they are entitled to reimbursement of costs and expenses. These costs include reasonable accountants', attorneys', arbitrators', and expert witness fees.

Furthermore, Beem Light Sauna can also be reimbursed for costs of investigation and proof of facts, court costs, and other litigation expenses. This extends to travel and living expenses, regardless of whether these expenses were incurred before, during the preparation for, or in anticipation of filing any such proceeding.

This means that if a guarantor fails to meet their obligations, leading Beem Light Sauna to take legal action, the franchisee (or rather, the guarantor) could be responsible for covering a wide range of legal and associated costs incurred by Beem Light Sauna. This could potentially amount to a significant financial burden for the franchisee, depending on the complexity and duration of the enforcement proceedings.

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.