What is the cure period for non-payment of amounts owed to Beem Light Sauna or its affiliates?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| e. | Termination by us without cause | Not applicable | None. |
| f. | Termination by us with cause | Section 14.2 | We can terminate only if you default under the Franchise Agreement (see (g) and (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. |
| 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, if a franchisee fails to pay amounts owed to Beem Light Sauna or its affiliates, they have a 10-day period to correct the non-payment. This cure period begins from the date that Beem Light Sauna notifies the franchisee of the deficiency.
This 10-day cure period is relatively short compared to cure periods for other defaults under the Franchise Agreement. For instance, the franchisee has 30 days to cure a failure to comply with any other provision of the Franchise Agreement. The short cure period for non-payment emphasizes the importance Beem Light Sauna places on timely payments from its franchisees.
It is important for prospective Beem Light Sauna franchisees to understand these termination terms and ensure they have sufficient financial resources to meet their obligations to Beem Light Sauna. Failure to do so could result in the termination of their franchise agreement.