What is the cure period for failing to pay monies owed to Beem Light Sauna or its affiliates?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
- (r) (i) You fail, refuse, or neglect to pay any monies owing to us or our Affiliates or fail to make sufficient funds available to us as provided in Section 3.14 (Methods of Payment) within ten days after receiving written notice of your default or 30 days after due date of the payment, whichever is the shorter period; (ii) you have previously been given at least two notices of nonpayment for any reason within the last 24 months and you subsequently fail to timely pay when due any monies; or (iii) you fail to do all things necessary to give us access to the information contained in your Technology System pursuant to Section 6.11 (Technology System) within 10 days after receiving notice;
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, a franchisee has a limited time to cure a failure to pay monies owed to Beem Light Sauna or its affiliates. Specifically, the franchisee has ten days after receiving written notice of the default, or 30 days after the payment due date, whichever period is shorter.
However, the FDD also states that if a franchisee has received at least two nonpayment notices within the previous 24 months, any subsequent failure to pay on time constitutes a default without any cure period. This means that Beem Light Sauna can take immediate action if a franchisee with a history of late payments fails to pay again.
It is important to note that these cure periods and conditions are specific to monetary defaults. Other types of defaults under the Franchise Agreement may have different cure periods or no cure period at all. A prospective franchisee should carefully review the entire Item 23 of the FDD, as well as the full Franchise Agreement, to understand all potential default scenarios and their corresponding consequences.