What deadlines must a Beem Light Sauna franchisee adhere to for developing studios?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
different fees (though no Franchise Fee shall be owed under such agremeent) and territorial rights. You must sign a Franchise Agreement for a Studio before you may execute a lease, sublease, or purchase agreement intended for such Studio or commence construction of such Studio. We will not be obligated to offer you a Franchise Agreement for a Studio unless:
- 1. we have complied with all applicable franchise registration and disclosure laws and, if required by applicable laws, have provided you with a copy of our then-current Franchise Disclosure Document; and
- 2. you and any Affiliated Entities have fully complied with any Franchise Agreements that are in effect.
- 3.2 Deadlines. You must enter into Franchise Agreements and develop and open Studios in accordance with the deadlines set forth in the Development Schedule. Signing Deadline. By each "Signing Deadline" specified in the Development Schedule, you must have signed our then-current standard form of Franchise Agreement for the applicable number of Studios in the Development Area specified on the Development Schedule. Opening Deadline. By each "Opening Deadline" specified in the Development Schedule, you must have the applicable number of Studios in the Development Area open and operating. Discretionary Extension. We may, in our sole discretion, extend any Signing Deadline or any Opening Deadline, which we may condition on your payment of an Extension Fee and execution of a general release. The "Extension Fee" for each Studio will be $2,500 per month (or portion of a month) that the Signing Deadline or Opening Deadline for such Studio is extended. Any extension that we grant you (or your Affiliated Entity) will apply only to the Studios for which you (or your Affiliated Entity) obtained the extension and will not extend, delay, or otherwise impact any other deadline under the Development Schedule. Disclosure Extension.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, franchisees who sign a Development Agreement must adhere to specific deadlines for signing Franchise Agreements and opening studios, as outlined in the Development Schedule. These deadlines are referred to as the "Signing Deadline" and the "Opening Deadline." By the Signing Deadline, the franchisee must sign the current standard Franchise Agreement for the specified number of studios in the designated Development Area. By the Opening Deadline, the franchisee must have the required number of studios open and operating in the Development Area.
Beem Light Sauna may, at its discretion, extend either the Signing Deadline or the Opening Deadline. However, this extension may be conditional, requiring the franchisee to pay an Extension Fee and execute a general release. The Extension Fee is $2,500 per month (or portion thereof) for each studio for which the deadline is extended. It's important to note that any extension granted applies only to the specific studios for which it was obtained and does not affect any other deadlines within the Development Schedule.
There is an exception to these deadlines. If a franchisee is unable to execute a Franchise Agreement by the Signing Deadline due to Beem Light Sauna's failure to provide a timely Franchise Disclosure Document (FDD), the Signing Deadline and Opening Deadline will be adjusted to account for the delay in providing the FDD. This adjustment will not require the franchisee to pay an Extension Fee or execute a general release. Additionally, if a studio is destroyed or damaged due to circumstances beyond the franchisee's control, the franchisee must promptly notify Beem Light Sauna of the event.