What is the deadline for a Beem Light Sauna franchisee to complete construction and open their studio for business?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
election Area. You must notify us in writing promptly when construction begins and must maintain continuous construction until the Studio is completed. You agree to complete the construction of your Studio in accordance with the approved Plans at your expense. We and our agents may inspect the construction at all reasonable times. After completion of construction, you must promptly obtain a certificate of occupancy and provide a copy of the certificate to us.
- 4.5 Opening Deadline. You must complete construction of and open your Studio for business no later than 270 days after the Effective Date (the "Opening Deadline"), unless we grant you an extension in writing. We may, in our sole discretion, extend the Opening Deadline, which we may condition on you agreeing to pay an extension fee of $2,500 for each month (or portion of a month) for which the Opening Deadline is extended and you executing a general release. You may not open the Studio until you have received our written approval, which we will not provide until (i) we have viewed the certificate of occupancy, (ii) confirmed that you
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 must complete construction and open their studio for business within 270 days of the Effective Date, as defined in Appendix A of the Franchise Agreement. This deadline is referred to as the "Opening Deadline."
Beem Light Sauna may, at its discretion, offer a written extension to this deadline. However, this extension may be conditional. Beem Light Sauna could require the franchisee to pay an extension fee of $2,500 for each month (or portion thereof) that the deadline is extended. Additionally, Beem Light Sauna may require the franchisee to execute a general release as a condition of the extension.
Even if construction is completed, a Beem Light Sauna franchisee cannot open their studio until they receive written approval from the franchisor. This approval is contingent upon several factors: the franchisor viewing the certificate of occupancy, confirming compliance with the approved plans, verifying compliance with pre-opening marketing obligations, ensuring initial employees meet training requirements, and meeting the minimum pre-opening membership requirements outlined in Appendix A. Specifically, the franchisee must have either 150 members signed to membership agreements or enough membership agreements to generate $20,000 in recurring monthly Gross Sales.